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Luxury
LVMH sales crater as fashion and beverage sales fall
Luxury goods conglomerate LVMH saw revenue and profit drop last half, with its fashion and alcoholic beverage segments leading these declines. Revenue was EU€39.81 billion, falling 4% year-over-year in line with Visible Alpha estimates. Net profit dropped by 22% to €5.70 billion. “LVMH showed solidity in the current context. We owe this to the power of our iconic brands and their boundless capacity for innovation while remaining true to their culture of incomparable artisanal craftsmanship,” said LVMH CEO Bernard Arnault. “We head into the second half of the year with great vigilance, and I am confident in LVMH’s tremendous long-term potential and the commitment of our teams to further reinforce the Group’s leadership position in luxury goods.” Reported revenue declined across all segments except Selective Retailing, which remained flat. Fashion & Leather Goods, its largest segment, posted an 8% year-over-year fall to EU€19.12 billion. Wines & Spirits revenue also dropped by 8% year-over-year to €2.59 billion. Its profit from recurring operations plummeted by 33%, the largest of any segment, which the company attributed to trade tensions in the United States and China and weak demand for cognac. Profit fell acros
Luxury
Diamonds are forever - not synthetic ones for De Beers
De Beers is shutting down its Lightbox lab-grown diamond (LGD) jewellery business and pivoting back to its “diamonds are for ever” naturally selected focus after a whopping 90% fall in value. Lightbox was established in 2018 and launched with a price of US$800/ct LGD. Since then LGD carat prices have fallen off a cliff by 90% at wholesale, tracking closer to a cost-plus model as they diverged from natural diamond prices. That's because consumer demand was low, having been devalued in people's minds by the ease with which synthetics flooded the market - especially from China.Source: De Beers GroupReflecting on this sharp price decline, De Beers says it intends to discontinue the Lightbox business and return to its core values as a producer of rare natural diamonds.Every great love story has a beginning, middle and no endAs part of the closure process, the company is discussing the sale of certain assets, including inventory, with potential buyers. It will still run its Element Six arm, which focuses exclusively on industrial applications for synthetic diamonds. De Beers says the failure of synthetic diamonds as jewellery has reinforced its “commitment to natural diamonds in the jewellery sector”. “The evolution of
Luxury
Donatella steps down after 30 years of leading Versace
Donatella Versace has announced she is leaving the role of creative director at Versace after nearly three decades. She first took on the job in 1997, after the murder of her brother Gianni. Donatella's successor is Dario Vitale, a former image and design director for Miu Miu, but she will not leave the fashion house entirely, instead taking on a brand ambassador position, which will see her focus on “philanthropic and charitable endeavours” and “advocate for the brand globally". Vitale's debut collection will be the first in the brand's history to not be overseen by either Gianni or Donatella. The shift in leader at the helm comes as speculation continues to swirl that Prada Group is looking to buy Versace from the Capri Holdings group. Capri bought the fashion house for €2billion (A$3.4 billion) but Bloomberg reported earlier this month, Prada Group could be looking at a cheaper price tag of €1.5 billion if they move ahead. In a statement, Donatella said she was “thrilled that Dario Vitale will be joining us, and excited to see Versace through new eyes". “It has been the greatest honor of my life to carry on my brother Gianni’s legacy. He was the true genius, but I hope I have some of his spirit and tenacity
Luxury
Sales decline: Estee Lauder reports losses, jobs cuts
Luxury beauty giant Estee Lauder is set to cut 7000 jobs - the equivalent of 11% of its workforce - by fiscal 2026. As of the previous financial year, Estee Lauder employed roughly 62,000 people. This comes as the international cosmetic brand reported a 6% drop in net sales in the previous quarter. “We are significantly transforming our operating model to be leaner, faster, and more agile, while taking decisive actions to expand consumer coverage, step-change innovation, and increase consumer-facing investments to better capture growth and drive profitability,” said CEO Stéphane de La Faverie. Sales on all products except for fragrances have experienced a decline. Net sales for the company that is parent to brands including MAC, La Mer and Aveda, is reflective of an overall challenging retail environment, including subdued consumer sentiment in the key markets of mainland China, Korea and Hong Kong. The company posted sales of US$4 billion in the latest quarter, down from $4.28 billion in the same period last year. However revenue was still slightly above the anticipated $3.977 billion. The company exceeded analysts' predictions, achieving an adjusted earnings per share (EPS) of $0.62 versus the expected $0
Luxury
LVMH reports solid 2024 sales amid ongoing challenges
LVMH Moët Hennessy Louis Vuitton SE, the world’s largest luxury goods company, reported solid full-year sales for 2024 amid a challenging economic and geopolitical environment. The French conglomerate, which owns iconic brands such as Louis Vuitton, Moët & Chandon, and Hennessy, posted revenues of €84.68 billion (A$141.3 billion), while earnings per share was reported at €25.12. The company recorded organic growth of 1% year-over-year. Fourth-quarter sales also exceeded expectations, driven by strong demand in Europe, the U.S., and Japan, although weakness persisted in the broader Asia region. Bernard Arnault, LVMH chairman and Chief Executive Officer noted, “The creativity and very high quality of our products, our steadfast commitment to excellence, the agility of our teams and the good geographic balance of our locations underpin the success of LVMH and its Maisons, backed by the dedication of all our people.” The group's selective retailing division, which includes Sephora, and its perfume and cosmetics segment delivered particularly strong performances. However, its key fashion and leather goods, as well as wine and spirits divisions, faced challenges. LVMH’s results come as the luxury industry grapples with he

Luxury
The Founders: Lab-grown diamonds make The Cut
The Founders is a new finance series by Azzet, showcasing the inspiring journeys of visionary entrepreneurs who turned ideas into thriving businesses. Dive into captivating stories and insightful interviews with founders and CEOs, as they share their challenges, triumphs, and industry insights in this ongoing series. Talitha Cummins has diamonds in her blood. A former broadcast journalist at Weekend Sunrise and Seven News, she teamed with her uncle Craig Blizzard, a jewellery industry veteran, and her cousin Kara Blizzard to launch The Cut Jewellery in 2023. Specialising in lab-grown diamonds, The Cut “creates exceptional pieces with a focus on craftsmanship and very high quality service,” Cummins told Azzet. Lab-grown diamonds shineLab-grown diamonds’ market share has surged in recent years. The sector now accounts for around 20% of the US$89 billion global jewellery market — up from close to 0% a decade ago. According to Cummins, consumers have grown more accepting of lab-grown diamonds as they’ve learned more about the product. “It’s not a fake, it's not an imitation,” she says. “It is in fact carbon, chemically and physically the same as a diamond that comes from the earth.” With that cultural acceptance, she says,
Luxury
LVMH misses Q3 projections; Chinese demand weakens
LVMH Moët Hennessy Louis Vuitton reported a 3% decline in revenues for the third quarter, missing market expectations amid weakening Chinese demand and moderating growth in Japan. The luxury conglomerate reported total revenues of €19.1 billion, attributing the declines to a stronger Japanese yen. However, LVMH highlighted resilience in its core markets, with Europe and the U.S. showing slight growth. “In an uncertain economic and geopolitical environment, the Group remains confident and will maintain a strategy focused on continuously enhancing the desirability of its brands, drawing on the authenticity and quality of its products, excellence in distribution and agile organisation,” the company stated. Its Wine & Spirits division posted the largest decline of 11%, with Fashion & Leather Goods and Watches & Jewelry also slipping. LVMH’s total revenue so far in 2024 is EU€6.8 billion. Conversely, Perfumes & Cosmetics recorded a 5% revenue increase following successful launches from Dior and Givenchy. Selective Retailing, which includes Sephora, also posted 6% organic growth, gaining market share in Europe, North America, and the Middle East. The report also noted several of LVMH’s product lines have suffered from
Luxury
Heavyweights Authentic, Saks Global form luxury platform
A new joint venture, Authentic Luxury Group (ALG), is being launched by Authentic Brands Group (Authentic), a global brand development, marketing, and entertainment platform, and Saks Global, the world's leading luxury retailer, which includes Saks Fifth Avenue and Saks OFF 5TH. The venture is home to authentic-owned luxury brands such as Barneys New York, Judith Leiber Couture, Hervé Léger, and Vince, which are dedicated to redefining and expanding the modern luxury experience. Through new strategic licensing agreements and distribution channels, ALG will foster brand growth across fashion, retail, digital, hospitality, real estate, art, travel and other sectors. The first brand to benefit from ALG's platform will be Barneys New York. Similarly to the Barneys New York Residences that opened in Tulum, Mexico earlier this year, ALG will expand beyond fashion into lifestyle categories. By developing branded luxury residences, condominiums, and hotels in world-renowned destinations, ALG will also showcase the best destinations in the world. Jamie Salter, Founder, Chairman, and CEO of Authentic, said, “The creation of ALG represents years of successful collaboration under our initial licensing agreement with Saks for Barne