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France 24
17-07-2025
- Business
- France 24
Swatch profits plunge on weak China sales
Net sales fell 11.2 percent to 3.1 billion Swiss francs ($3.8 billion), while net profit plunged 88 percent to 17 million francs. "The decline in sales is exclusively attributable to China," the company said, adding that sales in other regions reached record levels set in 2023 and 2024. Besides its eponymous Swatch watches, the company owns high-end brands such as Omega, Longines and Tissot, and like other luxury firms the demand of Chinese consumers for Western goods has made it a top market. But Swatch said the region's share in total sales have fallen from a third to just under a quarter as China's economy has struggled, with a real estate crisis hampering consumption by many households. Sales to Chinese wholesalers fell by 30 percent during the first half of the year and were down by 15 percent in Swatch's retail stores. But Swatch said it has seen the first signs of improvement in China and expects an improved market environment in the second half of the year. Meanwhile, first half sales growth reached double digits in North America, India, Turkey, Middle East and Australia. "The USA, Japan and India continue to have great growth potential," it said, adding it expects utilisation of its production capacity to rise in the second half of the year thanks to new product launches.
Yahoo
09-07-2025
- Business
- Yahoo
LVMH names new chairman and CEO of LVMH Americas
This story was originally published on Fashion Dive. To receive daily news and insights, subscribe to our free daily Fashion Dive newsletter. LVMH announced the appointment of Michael Burke as chairman and CEO of LVMH Americas, effective July 7, according to a statement posted on the company's LinkedIn page. Burke is responsible for 'representing and promoting the best interests of the Group in North and South America,' per the statement. No announcement was made regarding the roles of Anish Melwani, currently chairman and CEO of LVMH North America, and Davide Marcovitch, currently president of LVMH Latin America and Africa. Most recently, Burke was chairman and CEO of LVMH Fashion Group, which includes Celine, Givenchy, Kenzo, Loewe, Marc Jacobs, Patou, Pucci and Rossimoda. He will now report to LVMH Group Managing Director Stéphane Bianchi. The executive shift comes as LVMH grapples with a revenue downturn. The company posted a 2% year-over-year revenue drop in Q1, following several consecutive quarters of similar declines. In addition, sales in the U.S. region were down 3% for that quarter and flat in fiscal 2024. LVMH said in its statement that Burke's appointment comes during 'a complex and evolving geopolitical period' and that his new role highlights the company's plans to further invest in the Americas in the coming years. 'Throughout our close and fruitful collaboration, Michael has perfectly incarnated the values of our Group,' LVMH Chairman and CEO Bernard Arnault said in the statement. 'His outstanding leadership helped to continuously elevate the desirability and craft of the whole industry to new heights. I am convinced his long-term vision, and unique entrepreneurial spirit will be invaluable assets to the Group at this strategic time in the Americas.' Early in his career, Burke joined Groupe Arnault, the family holding company of Bernard Arnault, and was responsible for investments in the U.S. He later served as CEO of multiple LVMH-owned companies, including Christian Dior USA, Louis Vuitton North America and Fendi. In 2012 he was appointed CEO of Bulgari and then chairman and CEO of Louis Vuitton. Burke is also a member of the LVMH Executive Committee, chairman of the Tiffany board of directors, and a direct advisor to Arnault. LVMH has made several executive changes in 2025, including the April announcement of new CEOs at Fendi, Dior Couture and Kenzo. In March, the company appointed Damien Bertrand as deputy CEO of Louis Vuitton, Frédéric Arnault as CEO of Loro Piana, and Jean-Christophe Babin as CEO of LVMH Watches. Recommended Reading Apparel stays resilient as personal luxury goods market contracts Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
16-06-2025
- Automotive
- Reuters
Renault boss De Meo quits, with reports of switch to Gucci-owner Kering
LONDON, June 16 (Reuters) - News of Renault ( opens new tab Chief Executive Luca de Meo's decision to leave the French carmaker and subsequent reports of him being lined up to take charge at luxury goods group Kering ( opens new tab has created a stir across their respective sectors. Here's some initial reaction from analysts. "Hiring someone from outside the luxury sector might be seen as risky, but his profile appears well suited to lead Kering. We would view positively the appointment of an outsider, and Luca de Meo could be the right profile to drive the turnaround. "His turnaround capabilities, product-focused leadership, and extensive marketing experience would be particularly valuable. "We see Denis Le Vot (head of Dacia) and other internal candidates as potential successors, as well as Maxime Picat, a French executive from Stellantis." "Investors were this year focused on the announcement of Renault's mid-term plan. With the CEO stepping down, this will naturally provide a setback. "In terms of potential candidates for the CEO position, we see Renault has a strong bench across its different brand managers including Dacia, but also would envision potential external candidates." "Brand management and marketing are his forte, which dovetails with what the luxury industry does - for which he seems passionate. "Time will tell if he manages to hit the ground running and be effective in a different industry. De Meo acted decisively at Renault, reducing capacity and break-even points. "De Meo has a titanic challenge ahead of him. Critically, investors will need to hear what it is that De Meo plans to do and digest how soon his plans can be realised." "Execution of luxury brand turnarounds has become more complex, lengthy, costly and far less public market-friendly, reflecting consumer preference for top brands rather than those in transition. "We believe it's premature to adopt a more positive stance given the lack of visibility on Gucci's turnaround." "His departure leaves Renault leaderless at a time when the group is due to communicate a new strategic plan and further unwind the Nissan alliance. "His departure may hurt early lobbying (joint with Stellantis) to revive an affordable small car segment in Europe. It will add to concerns about Renault's ability to be independent, the growing influence of Geely as minority investor (engines, Korea, Brazil) and renewed interference from the French state, now the largest core shareholder at 15%. "Recent changes at Stellantis may provide a pool of applicants."
