Latest news with #HermesInternationalSCA
Fashion Network
7 days ago
- Business
- Fashion Network
Luxury's split between winners and losers is only getting wider
One striking example of the sector's divide is LVMH versus French peer Hermes International SCA. Sales at LVMH's key Fashion & Leather Goods division are expected to have dropped 7.8% in the second quarter, according to analyst estimates. The company reports after the bell on Thursday. Hermes, which has been an example of how companies can thrive on selling the highest-end items, is expected to report revenue growth of 12% at its leather goods division. Its results are due on July 30. In the case of the Louis Vuitton and Tiffany & Co. owner, the stock has lost roughly half of its value over the past two years, losing its crown of Europe's biggest stock, with investors increasingly worried about an unprecedented demand slump in China. Hermes shares, on the other hand, are weathering the broader industry pullback. After a 160% jump since the end of 2020, the stock is little changed this year versus a 7% drop in Goldman Sachs Group Inc.'s basket of luxury shares. In the current economic context, pricing power is critical, said Helen Jewell, Europe, Middle East and Africa chief investment officer at BlackRock Fundamental Equities. 'The challenge for investors has been some of the names that we thought had greater brand strength, and it turned out they actually didn't,' she said, adding that there could be some buying opportunities after the selloff in the sector 'but you do need to be selective.' For the sector as a whole, the difference is stark between now and the 2021 to 2023 boom times, when investors were rushing to snap up any European luxury shares as they reaped the profits from shoppers on a post-pandemic spending spree. But with China's sluggish economy putting a dent into demand for pricey handbags and watches, investors are buying shares in the brands that can captivate consumers and selling the ones that can't. Among this year's winners, shares in Burberry have surged more than 30%. The UK fashion brand is gaining traction with its turnaround plan and winning new customers through its outwear push. To some investors, luxury valuations are still too high overall even after this year's plunge in a number of stocks. The industry has an average forward price-earnings ratio of 27, according to data compiled by Bloomberg. That's a near 85% premium to the broader market and above the long-term premium from the past 10 years. 'This is a sector that is fully exposed to tariffs and fully exposed to the weaker dollar,' said Roland Kaloyan, head of European equity strategy at Societe Generale SA. 'It's going to be quite difficult, so I stick to my underweight.'
Fashion Network
23-07-2025
- Business
- Fashion Network
Luxury's split between winners and losers is only getting wider
One striking example of the sector's divide is LVMH versus French peer Hermes International SCA. Sales at LVMH's key Fashion & Leather Goods division are expected to have dropped 7.8% in the second quarter, according to analyst estimates. The company reports after the bell on Thursday. Hermes, which has been an example of how companies can thrive on selling the highest-end items, is expected to report revenue growth of 12% at its leather goods division. Its results are due on July 30. In the case of the Louis Vuitton and Tiffany & Co. owner, the stock has lost roughly half of its value over the past two years, losing its crown of Europe's biggest stock, with investors increasingly worried about an unprecedented demand slump in China. Hermes shares, on the other hand, are weathering the broader industry pullback. After a 160% jump since the end of 2020, the stock is little changed this year versus a 7% drop in Goldman Sachs Group Inc.'s basket of luxury shares. In the current economic context, pricing power is critical, said Helen Jewell, Europe, Middle East and Africa chief investment officer at BlackRock Fundamental Equities. 'The challenge for investors has been some of the names that we thought had greater brand strength, and it turned out they actually didn't,' she said, adding that there could be some buying opportunities after the selloff in the sector 'but you do need to be selective.' For the sector as a whole, the difference is stark between now and the 2021 to 2023 boom times, when investors were rushing to snap up any European luxury shares as they reaped the profits from shoppers on a post-pandemic spending spree. But with China's sluggish economy putting a dent into demand for pricey handbags and watches, investors are buying shares in the brands that can captivate consumers and selling the ones that can't. Among this year's winners, shares in Burberry have surged more than 30%. The UK fashion brand is gaining traction with its turnaround plan and winning new customers through its outwear push. To some investors, luxury valuations are still too high overall even after this year's plunge in a number of stocks. The industry has an average forward price-earnings ratio of 27, according to data compiled by Bloomberg. That's a near 85% premium to the broader market and above the long-term premium from the past 10 years. 'This is a sector that is fully exposed to tariffs and fully exposed to the weaker dollar,' said Roland Kaloyan, head of European equity strategy at Societe Generale SA. 'It's going to be quite difficult, so I stick to my underweight.'
IOL News
11-07-2025
- Entertainment
- IOL News
Auction history made: Jane Birkin's original Hermès bag fetches R179 million
The very first Birkin handbag made for actress Jane Birkin sold for a whopping €8.58 million at Sotheby's Paris. Image: Instagram. In a breathtaking display of luxury and exclusivity, the original Birkin bag has set a new benchmark in the world of high fashion. Sold at a Sotheby's auction in Paris on Thursday, July 10, for a staggering €8.58 million (R179.8 million), the iconic black leather handbag once owned by late singer and actress Jane Birkin underlines the insatiable demand for unique luxury collectables. The bidding war, which lasted for just over 10 electrifying minutes, unfolded with bids coming in over the phones, online and in the room. Actress Jane Birkin with the very first Birkin handbag. Image: Instagram In the end, the handbag that changed fashion history was met with applause as it was sold to a private collector from Japan. The original Birkin bag, commissioned in 1984 for Jane Birkin by Hermes International SCA's then-CEO Jean-Louis Dumas, is now widely regarded as one of the most sought-after handbags in the world. It was born from a chance encounter on a flight when Birkin expressed her frustrations over the lack of spacious handbags to Dumas, leading him to sketch a design on a 'sick bag'. Little did they know that this chance encounter would give birth to a fashion phenomenon that transcends generations. As the hammer fell in the Paris auction house, the bag's sale shattered the previous record held by the Hermès Himalaya Niloticus Crocodile Diamond Retourne Kelly 28, which features 18-carat white gold and diamond hardware, which sold for a modest $510 000 in 2021. This time, the anonymous Japan-based buyer emerged victorious. 'Today it's the most sought-after bag that everybody dreams about,' reflected the seller, Catherine Baignères, who had cared for the bag for the past 25 years. She revealed online that the bag was kept in a safe environment, treated with the utmost care to preserve its allure and integrity. 'I had it in a safe-like location, appropriate temperatures, but occasionally took it out for some events,' she shared in an online report. Birkin owned the original bag for a decade before auctioning it off in 1994 to support the French Aids charity, Association Solidarité Sida. The item was then acquired by Baignères, who owned a luxury boutique in Paris and cherished it for the next 25 years. The original Birkin's unique provenance, coupled with its rich history, has transformed it into a cultural icon. According to Morgan Halimi, head of Bags and Fashion at Sotheby's, this sale is an 'impressive demonstration of the power of the legend' surrounding the Birkin bag. 'There is no doubt that the Original Birkin bag is a true one-of-a-kind, a singular piece of fashion history that has grown into a pop culture phenomenon that signals luxury in the most refined way possible. "It is incredible to think that a bag initially designed by Hermès as a practical accessory for Jane Birkin has become the most desirable bag in history," said Halimi. With notable owners including the likes of Kate Moss, Victoria Beckham, and Jennifer Lopez, the Birkin bag has solidified its status as a definitive status symbol. The original Birkin bag now holds the title of the most valuable handbag ever sold at auction, capturing the imaginations of fashion lovers and collectors.
Bloomberg
19-02-2025
- Business
- Bloomberg
Hermes in ‘League of Their Own' as Family Gets $5 Billion Payout
By and Angelina Rascouet Save The French family behind Hermes International SCA is on track to pocket more than $5 billion in dividends for a series of four record-breaking years, when the maker of pricey leather handbags and silk scarves rode an industry boom and is now defying a slump. Some 100 heirs to the luxury fortune, who control just over two thirds of Hermes shares, have benefited from rapidly rising payouts including this year's biggest ever. The company reported a jump in fourth-quarter revenue while rivals LVMH Moët Hennessy Louis Vuitton SE and Gucci-owner Kering SA recorded declines.
