Luxury goods companies have almost all given their verdict for the 1st quarter
Luxury goods companies have almost all given their verdict for the 1st quarter of 2024. These results were particularly eagerly awaited, as after the post-Covid boom years, the market normalized last year, widening the gaps between the major brands.
Some brands, however, continue to impress, posting double-digit sales growth. Four such groups stand out: Hermès, Brunello Cucinelli, Moncler and Prada.
Hermès, Moncler, Prada and Brunello Cucinelli impressed
The group with the most impressive results is Hermès. Sales held firm at +17%, consolidating its position as the world’s number two in terms of market capitalization. Once again, the group has beaten the odds by reporting sales ahead of expectations, bucking the current trend. Moreover, Hermès did not suffer in Asia, where revenues rose by 14%. Double-digit growth was recorded in all geographic zones, including +25% in Japan, +15% in Europe and +14% in France. These excellent results can be explained by the desirability of products, despite rising prices, and the loyalty of customers, who renew their purchases frequently, as Hermès’ clientele has little sensitivity to the economic climate and inflation.
Italian brands are also doing well, with Brunello Cucinelli once again reporting double-digit growth (+16.5%), driven by the United States and wholesale. Italian fashion group Moncler increased its first-quarter sales by 16%, buoyed by solid demand in China, where other luxury players are suffering. Total sales for the three months to March amounted to €818 million, above the company’s consensus of €786 million. By contrast, sales of Stone Island, the brand to be acquired by Moncler in 2021, fell by 5%.
Prada, the famous Italian luxury group, also announced an impressive increase in sales, exceeding analysts’ expectations. This growth is attributed to the strong performance of its Miu Miu brand and continued expansion in Asia, particularly Japan, demonstrating the strength and appeal of their brands in the international market. This increase was driven by higher net retail sales and royalties for the Italian luxury fashion house.
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Featured photo : © Hermès
