Following the release of LVMH Group's financial report for the third quarter last week, luxury brands such as Hermès and Kering Group have also released their third-quarter revenue data this week. The luxury goods market still faces an uneven "hot and cold" situation and is overall facing a harsh winter. Kering Group's third-quarter revenue decreased by 15%, and Citibank downgraded Kering Group's stock rating from neutral, ending more than a decade of support with a buy rating. Zegna's third-quarter revenue fell by 7.8% to €430 million, with organic revenue down by 6.7%. The third-quarter data for various luxury brands generally did not meet expectations.

However, the fast-moving consumer goods giant Unilever's third-quarter revenue was impressive, with revenue growth for four consecutive quarters, all exceeding analysts' expectations.

In the face of a weak economy, brands are coming up with new strategies. LVMH has launched an employee stock ownership plan, which will involve the issuance of up to 200,000 new shares. Amazon is planning to launch a brand-new low-cost store strategy to compete with discount e-commerce giants such as Temu and Shein.

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In terms of fashion trends, the Lyst list has been reshuffled, and changes in brand rankings are also indicating the development trends in the fashion industry.

1. Hermès' third-quarter sales increased by 11%

Hermès released its financial data for the third quarter. The data shows that despite the company suffering a loss of €242 million due to exchange rate fluctuations, its consolidated revenue for the first nine months of this year increased by 14% year-on-year to €11.2 billion at constant exchange rates. Sales for the three months ending September 30 increased by 11%. Geographically, all regions achieved growth as of September 30, 2024. The Americas region grew by 13%, and Europe (excluding France) saw an 18% increase in sales due to strong tourist traffic throughout the summer, with French sales increasing by 14%. Japanese sales increased by 23%. By category, watch sales decreased by 6% year-on-year, the only category to decline; its ready-to-wear continued to grow, with sales for the three months ending September increasing by 15% year-on-year, and scarf sales increased by 2%. In addition, the company's jewelry division grew by 17% this quarter.

Jewelry and ready-to-wear have become dual engines of growth, but the watch market has unexpectedly cooled, and the "hot and cold" in the luxury goods industry is thought-provoking.

2. Kering Group's third-quarter revenue decreased by 15%, and the rating was downgraded

Recently, Kering Group released its financial data. The data shows that for the three months ending September 30, Kering Group's revenue decreased by 15% to €3.79 billion, and on a comparable basis, revenue decreased by 16%. Citibank recently downgraded Kering Group's stock rating from neutral, ending more than a decade of support with a buy rating, leaving Kering Group with only three buy ratings, the lowest level since 2003. Analysts believe that the luxury brand transformation process faced by Kering Group is becoming more complex, prolonged, and costly, and the transformation results of its core brand Gucci have not yet translated into positive sales momentum.

The downgrade from Citi, coupled with a significant decrease in quarterly revenue, can be considered a double blow to Kering Group.3. L'Oréal's Second Quarter Sales Increase by 3.4%

French beauty giant L'Oréal has released its latest performance data, showing that the group's revenue for the first three quarters of this year increased by 6% to €32.4 billion, with a growth of 8.1% at constant exchange rates. In particular, the third quarter saw a revenue increase of 3.4% to €10.3 billion, which fell short of Jefferies' expected 6% growth.

By department, the Professional Products division saw a 6.1% increase in revenue to €1.16 billion in the third quarter, the Consumer Products division's revenue grew by 1.4% to €3.75 billion, the Luxury division's revenue increased by 5.8% to €3.77 billion, and the Active Cosmetics division's revenue rose by 0.8% to €1.6 billion.

By region, the third quarter saw a 6.5% decrease in revenue in the Asia market to €1.96 billion, the only declining market and a worsening from the 2.4% drop in the second quarter. The European market's revenue increased by 5.6% to €3.42 billion, the US market's revenue grew by 5.2% to €3.11 billion, the SAPMENA-SAA market's revenue increased by 8% to €960 million, and the Latin American market's revenue rose by 8.6% to €850 million.

Although L'Oréal's revenue growth in the third quarter did not meet expectations, the increase is still a positive sign. However, the sluggish performance in the Asian market requires attention.

4. Ermenegildo Zegna Group's Third Quarter Revenue Decreases by 7.8%

Italian luxury group Ermenegildo Zegna has announced its latest performance data, showing that the group's revenue for the first nine months of this year increased by 1.7% to €1.36 billion, with an organic revenue decrease of 4%. In particular, the third quarter saw a revenue decrease of 7.8% to €430 million, with an organic revenue decrease of 6.7%.

By brand, the core brand Zegna's revenue decreased by 2.9% to €290 million in the third quarter, Thom Browne's revenue plummeted by 27.4% to €74 million, and Tom Ford Fashion's revenue decreased by 12.2% to €75 million.

By region, the EMEA market's revenue decreased by 2.1% to €150 million in the third quarter, the US market's revenue fell by 6.1% to €120 million, the Chinese market's revenue plummeted by 23% to €110 million, the APAC market excluding China saw a 6.1% increase in revenue to €46 million, and other regions' revenue decreased by 46% to €1.09 million.

The "winter" of the luxury goods market still requires transformation and innovation by companies to effect change.5. Unilever's Revenue Exceeds Expectations for the Third Quarter with Four Consecutive Quarters of Growth

Fast-moving consumer goods giant Unilever has announced its latest performance data, with the group's third-quarter revenue increasing by 4.5% to €15.2 billion, surpassing analysts' expectations of 4.2%, marking four consecutive quarters of growth.

By department, Unilever's Beauty & Personal Care division saw a revenue increase of 6.7% to €3.2 billion, the Home Care division increased by 4.4% to €3.4 billion, the Nutrition division grew by 1.5% to €3.2 billion, and the Ice Cream division increased by 9.8% to €2.4 billion.

Unilever expects a full-year revenue growth of 3% to 5%, with an operating profit margin of at least 18%.

Amid a weak global economy and consumer downgrading, fast-moving consumer goods are more likely to win over consumers, and Unilever has easily surpassed market forecasts, demonstrating the strength of a FMCG leader.

6. Courrèges Appoints New CEO

Kering Group's family investment group, Artemis, has appointed Marie Leblanc as the Chief Executive Officer of Courrèges, effective November 4th. In 2018, Artemis acquired the remaining shares of Courrèges, gaining 100% control of the brand. It is reported that Courrèges' new CEO recently resigned from her position as CEO of Victoria Beckham, succeeding Adrien Da Maia, who has held the position since 2020. Marie Leblanc joined Victoria Beckham in 2018, having previously been responsible for women's fashion and brand positioning at Parisian department store Printemps. Additionally, Marie Leblanc has worked in design and collection development at Isabel Marant, Celine, and Sonia Rykiel. In the future, Marie Leblanc will be responsible for collaborating with Courrèges' Creative Director Nicolas Di Felice to lead the brand's next phase of growth, as the company expands its retail network following a doubling of revenue last year.

Commentary: Another high-profile move in the fashion industry, signaling the beginning of a new chapter for the brand. Will this change enable the company to achieve new heights?

7. Former Gucci Americas President Joins SA Hospitality Group

Recently, SA Hospitality Group has appointed former Gucci executive Federico Turconi as Chief Executive Officer. The company owns 14 Sant Ambroeus restaurants, 12 Felice restaurants, and 1 Casa Lever restaurant. Federico Turconi served as President and CEO of Gucci Americas. On October 4th, he left Gucci. Then, on October 7th, he began his new position. Gucci representatives declined to comment on this personnel change. It is said that Gucci's Chief Commercial Officer, Cayetao Fabry, will oversee his former responsibilities as President and CEO of Gucci Americas. Further announcements are expected at an appropriate time.The catering industry welcomes a fashion giant, is it a cross-industry challenge or seeking a new battlefield?

8. LVMH launches an employee stock ownership plan

According to fashion business news, LVMH has launched an employee stock ownership plan. The plan will involve the issuance of up to 200,000 new shares, with the share subscription price set on October 18, 2024. The subscription period will last from October 24 to November 13, with the security delivery scheduled for December 18.

LVMH stated that this is an international employee stock participation plan aimed at covering 70% of employees worldwide, which will be rolled out in 11 market regions across Europe, North America, and Asia. This means that Chinese employees will also benefit from this shared stock ownership plan.

LVMH's move is both grand and astute, is it to bind people's hearts or to lay out the future? Short-term stock price fluctuations cannot conceal its long-term strategic ambitions.

9. To compete against Temu and Shein, Amazon also launches a low-price store

According to The Information, citing sources, Amazon is planning a new low-cost storefront strategy to compete with discount e-commerce giants such as Temu and Shein. The strategy imposes strict price caps on some products to ensure that their products maintain a price advantage in the competitive market. The sources continued, stating that Amazon has notified sellers that it will set a price cap of $8 for items like jewelry, a pricing limit of $13 for guitars, and a cap of $20 for sofas. It is reported that the store will cover about 700 products to attract price-sensitive consumer groups.

Analysts believe that the low-price strategy indicates a significant shift in Amazon's business focus. For a long time, Amazon has been relatively lenient in restricting seller pricing strategies on its platform, and this pricing policy is aimed at addressing the phenomenon of competitors like Temu and Shein winning market share with ultra-low prices.

Is Amazon's low-price storefront strategy a reluctant move or a well-thought-out plan? Regardless, the ever-changing landscape of the e-commerce world once again proves that price is king.

10. Miu Miu returns to the hottest brand on LystAccording to the latest Q3 2024 brand heat ranking released by Lyst, the Italian fashion brand Miu Miu has climbed one position from the second quarter, regaining the top spot as the hottest brand. Analysts believe that Miu Miu has become a catalyst for the performance of the Prada Group. CICC previously predicted that Prada's revenue would grow by 14% in the third quarter, and Miu Miu is expected to continue its momentum, with an estimated surge of 78% during the period.

The Spanish luxury brand Loewe slipped from first to second in the second quarter, with Prada in third place, followed by Saint Laurent, Alaia, Bottega Veneta, and Jacquemus. Additionally, Victoria Beckham, Ralph Lauren, Chloé, and Toteme have become new brands on the list.

The Lyst ranking shuffles again, with newcomers on the rise and veterans falling, the ever-changing landscape of the fashion world is truly fleeting.

11. Luxury industry's $8.5 billion blockbuster acquisition encounters obstacles

After the US stock market closed on Thursday, the US luxury group Capri plummeted by more than 45%. Previously, a federal judge blocked its $8.5 billion sale plan to Tapestry. At the same time, Tapestry's stock price rose by more than 13% after the market closed.

According to a document submitted to the court on Thursday, US District Judge Jennifer Rochon stated that the deal would be anti-competitive and subsequently put it on hold. The judge approved the preliminary injunction proposed by the Federal Trade Commission, blocking the motion for the merger of the two companies.

It is understood that the Federal Trade Commission filed a lawsuit in April this year, demanding to block the transaction, claiming that the merger would eliminate competition between Coach, Kate Spade, and Michael Kors, especially in the light luxury market. Tapestry and Capri argued that the FTC's definition of the light luxury market is not a relevant market, and handbag retailers have been competing with hundreds of other manufacturers and new entrants.

Capri's plummet highlights the judge's tough stance on antitrust, while Tapestry's stock price surge makes it a "winner". Under market rules, mergers are not an easy task.

12. LV prevents the registration of similar pattern trademarks in the EU

Recently, LV prevented the registration of a trademark similar to the brand's iconic monogram pattern. The European Union Intellectual Property Office (EUIPO) made a ruling last week, supporting LV's opposition and rejecting the trademark application of the third party, Qingjian Fu. EUIPO believes that the pattern is too similar to LV's monogram pattern, which may affect the brand's reputation.The case began in February 2023 when Qingjian Fu, based in Florence, applied to register a trademark for clothing, footwear, and leather products. Due to the similarity of the design, LV filed an objection in June of the same year.