In a significant pivot, luxury brands are increasingly looking to US consumers to drive their recovery amidst a challenging market landscape. Recent reports indicate that Richemont, the owner of Cartier, exceeded expectations in its latest quarter, which has boosted optimism across the luxury sector. Similarly, LVMH has regained its status as Europe's most valuable company, reflecting strong consumer demand [07350dc2].
Hermès, known for its resilience, reported a 13.3% increase in sales during the second quarter, reaching €3.7 billion. This growth was largely attributed to robust performance in regions outside Asia, which posted double-digit growth, while sales in Asia outside Japan remained stable compared to industry peers [d912185b]. Analysts suggest that the gap between strong luxury brands like Richemont, LVMH, and Hermès versus weaker brands such as Kering and Burberry is expected to widen. Brands like Dior may face challenges with their pricing strategies, while Hermès may have more flexibility due to moderate price increases [07350dc2].
In the fishing tackle industry, Rapala VMC reported a 2% increase in net sales to €120.5 million in the first half of 2024, driven by the successful launch of new products. The company noted improved profitability with a comparable operating profit margin of 5.1% and expects full-year comparable operating profit to rise from 2023 [d912185b].