French luxury goods group struggling amid crisis

According to the French “Textile” report, French luxury goods groups continue to bear new pressure from the economic slowdown.
Louis Vuitton’s turnover in the first quarter of 2009 fell by 7% year-on-year to 4 billion euros. Sales of its leading products, fashion and leather products, increased by 4% year-on-year to 1.59 billion euros. The European, Asian, and American markets continued to grow. Clothing sales from brands Marc Jacobs and Givenchy are popular. The group president said that despite the unfavorable situation at the beginning of the year, the group’s goal is still to strengthen the global luxury market.
Following a 3% drop in operating sales in 2008, Christian Dior’s sales continued to decline by 8% in the first quarter of 2009. In particular, clothing sales were hindered in the US and Japanese markets, and in emerging markets that have been extensively explored in recent years, such as China and the Middle East. The market seems to be holding up relatively well.
Gucci’s turnover in the first quarter of 2009 fell by approximately 4.9% at variable exchange rates, while sales of fashion and leather goods increased by 4%. The person in charge said that the market has shrunk significantly. There will be no significant improvement in April. The group is currently focusing on controlling costs and benefits to respond to sudden changes in the market.
After Yves Saint Laurent’s performance was flat in 2008, sales in the first quarter of 2009 fell by 10.2% year-on-year. In the U.S. market, due to shrinking business activities, all types of products are declining, ranging from clothing to apparel, from specialty stores to third-party marketing. . Sales of other brands of the group fell by 5.8%. In 2008, the group closed all Sergio Rossi brand shoe stores in the United States and reorganized multi-brand customer stores. The sales of various brands of clothing of the group were good, with sales of fashion and leather products only falling by 1%. Especially in the Asia-Pacific region (excluding Japan), sales increased by 25% in the first quarter. The most active market is China. Yves Saint Laurent has 571 branches around the world, of which 31 are in China. Its overall sales increased by 21% in emerging markets, fell by 11% in the European market, and fell by 18% in the US market.