LVMH and HERMES least affected by the crisis

World’s leading and biggest group in the luxury industry LVMH has announced drops in sales for all brands and segments, except for Louis Vuitton. LV generates over 30 percent of the entire group’s income and compensates for the performances of the smaller brands. LVMH includes: Louis Vuitton, Dior, Givenchy, Celine, Kenzo, Thomas Pink, Berluti, Sephora, Moet, Veuve Cliquot etc.
Societe Generale consultants mention HERMES among those unaffected by the crisis. The reason for this lies in the power of the brand Hermes and in a coherent retail and marketing strategy.
Industry’s number two, GUCCI Group has yet to announce official figures although specialists expect drops of around 10 percent on all brands, including Gucci which generates more than 25 percent of all the income for the group. We believe that Gucci’s situation is unsure also due to the uncertain effect of the new strategy put in place by the new CEO. Since the 9th of January, the new CEO started its management. He was previously CEO for Bottega, one of the more successful brands of the Gucci Group.