Luxury brands growing anxious about world crisis
Interviewed on the prolongued international financial crisis, Patrick Thomas, CEO of French luxury maison HERMES said: ”For the moment there is no impact on our sales, but that doesn’t mean effects will not show later” adding ”Macroeconomic worries always have an impact on our business”.
Tancrede de Lalun, who oversees fashion purchases at French department store Printemps, said he had noticed a slight downward trend since the beginning of September from French buyers, while tourist sales, which made up 35 per cent of ready-to-wear revenue, remained strong. In light of the market uncertainty, he had “put himself in a position to cancel orders from certain brands if need be. There is a general sense of worry in department stores but there is no panic,” Lalun told Reuters.
“I am very preoccupied by the world macroeconomic situation,” Thierry Andretta, chief executive of Lanvin, France’s oldest fashion house, told Reuters after the Lanvin fashion show at the ongoing Paris Fashion Week. Yet, Andretta said orders remained strong and he expected again to enjoy strong double-digit growth for 2011.
Until mid-September, luxury stocks had survived the stock market sell-off relatively unscathed. Since Sept. 21, Burberry has lost 21 per cent, Richemont 13 per cent, PPR 15 per cent and LVMH 12 per cent. Analysts at Morgan Stanley reckon ”the deteriorating economic environment in Europe and the slow down in the U.S. economy will bring a decrease in demand”.