Qatar-backed Louis Vuitton in $2.57bn acquisition
The shift to less conspicuous consumption is a familiar cycle, says Claudia DArpizio, a partner at consultant Bain & Co. New shoppers in fast-growing markets such as China and the Middle East , like the display of status and buy more obvious items such as logoed bags and bejeweled watches, she says. More established shoppers focus on being in-the-know on which brands have cachet, and value more subtle materials and craftsmanship. Appreciated Consistency Of course, flash can still sell in Russia if its expensive enough. Versace, a maker of $2,795 skimpy cocktail dresses, says Russian customers keep coming back precisely because it hasnt modified its style. The Russian market seems to appreciate our consistency, Versace said by e-mail. While Russians still do much of their spending on luxury goods abroad, attracted by prices that are as much as 50 percent cheaper, brands are expanding in the country as the middle class widens, according to Bain. Retail space devoted to selling luxury goods in the country has more than quadrupled to 1.65 million square meters in the last decade, estimates Moscow-based Fashion Consulting Group . Disposable incomes have risen 10-fold to 22,800 rubles since 2000, government data show, while the number of millionaire households has widened to 180,000 from 158,000 in 2011, Boston Consulting Group estimates. Russia is a great place to be, said Douglas Mandel, Christian Dior Coutures general manager in the country.
Loro Piana, which is also an integrated manufacturer of fine yarns, has been enjoying average annual sales growth of 17 percent over the past three years, which analysts said would help make up for slower growth at other LVMH brands such as Louis Vuitton. “The price is steep but it is a fairly unique business,” said Paul Swinand, analyst at market research house Morningstar. Loro Piana, which makes 30 percent of its sales in Asia, has enjoyed continued strong demand in China even as some other luxury brands such as Gucci and Louis Vuitton have experienced slowdowns. Earlier this year, it said it expected sales to grow a little over 10 percent this year, after growth of 13.1 percent to 630 million euros ($815m) in 2012. Consultancy Bain & Co expects sales in the global luxury goods market to rise 4-5 percent this year, cooling from 5 percent last year at constant exchange rates. LVMH said it planned to expand the Italian brand’s leather goods offering as well as its footprint worldwide.
Louis Vuitton Upgraded to “Buy” by Renaissance Capital (LVMUY)
The company has a market cap of 65.699 billion and a price-to-earnings ratio of 18.88. Other equities research analysts have also recently issued reports about the stock. Analysts at Sanford C. Bernstein reiterated an outperform rating on shares of LVMH Moet Hennessy Louis Vuitton SA in a research note to investors on Monday, June 17th. They now have a 165.00 ($211.54) price target on the stock. Separately, analysts at AlphaValue reiterated a buy rating on shares of LVMH Moet Hennessy Louis Vuitton SA in a research note to investors on Thursday, June 13th. They now have a 175.00 ($224.36) price target on the stock. Finally, analysts at Aurel BGC reiterated a buy rating on shares of LVMH Moet Hennessy Louis Vuitton SA in a research note to investors on Tuesday, June 11th. They now have a 150.00 ($192.31) price target on the stock. Six analysts have rated the stock with a hold rating, ten have issued a buy rating and two have issued a strong buy rating to the companys stock.
BNP Paribas Reiterates “Neutral” Rating for LVMH Moet Hennessy Louis Vuitton SA (MC)
The Kiwi team this morning collected their second point of the Louis Vuitton Cup, after another unopposed jaunt around the San Francisco Bay race course. They were scheduled to meet Artemis in their second match of the regatta, but with the Swedish team sidelined from the round robin stages as they battle to get back on the water after May’s fatal capsize, Team New Zealand were left to go it alone. The action on the water this week has been secondary to the ructions going on off it. But while the America’s Cup world eagerly awaits a decision from the international jury over protests by Team New Zealand and Luna Rossa, Davies said he and the rest of the crew isn’t wasting any time worrying about the result. “You never know which way it is going to go with the jury. It doesn’t bother me, we just have to get on with it either way,” said Davies. Team New Zealand and the Italians have protested moves made by regatta director Iain Murray to change the AC72 class rule just a week out from the start of racing.
Louis Vuitton Cup: Team New Zealand ‘beat’ Artemis
The firm currently has a $2.60 price objective on the stock. Renaissance Capitals price target points to a potential downside of 92.30% from the companys current price. Louis Vuitton ( NASDAQ: LVMUY ) opened at 33.77 on Tuesday. Louis Vuitton has a 1-year low of $27.75 and a 1-year high of $38.47. The stocks 50-day moving average is currently $34.02. The company has a market cap of $84.424 billion and a price-to-earnings ratio of 19.12. LVMH Moet Hennessy Louis Vuitton SA ( NASDAQ: LVMUY ) is a France-based luxury goods company.