Do Luxury Stocks’ Record Valuations Reflect Reality?

Gucci's Growth Lags Peers, The Return of 'Daigou'

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WHAT YOU NEED TO KNOW TODAY: WEDNESDAY, APRIL 26, 2023 Record share prices for many luxury brands reflect investor optimism that the current period of slowing sales growth and economic uncertainty will be short-lived. The luxury industry is bracing for the return of 'daigou' resellers ramping up grey market imports into China. Beauty brands are rediscovering the importance of field associates who can teach staff in brick-and-mortar stores to more effectively sell their products. Gucci's first-quarter sales rose 1 percent while Saint Laurent grew 8 percent, Kering said Tuesday. Gap plans to cut hundreds of jobs globally, as the struggling retailer looks to cut costs.

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LUXURY Do Luxury Stocks' Record Valuations Reflect Reality? By Robert Williams

Kering's first-quarter sales were a stress test for luxury demand after strong momentum at LVMH and Hermès pushed shares in the sector to dizzying heights. READ MORE

CHINA Luxury Braces for the Return of the 'Daigou' By Tiffany Ap

Grey market resellers that frustrate global brands in China by exploiting cross-border price gaps have been unleashed by the end of pandemic-era travel restrictions. READ MORE

BEAUTY Beauty Brands Are Rediscovering an Old-School Way to Sell Their Products By Sheena Butler-Young

Indie brands that used to rely on Instagram ads and TikTok influencers to spread the word are hiring traditional sales reps who trek from store to store promoting their wares. READ MORE

LUXURY Kering Sales Edge Up 1%, Lagging Rivals By Reuters The French luxury groups sees a small increase in sales, but it's well below the growth of competitors. READ MORE

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NEWS BRIEFS Spain's Tendam Hands Russian Shops to Belarusian Company After Existential Crisis, Primark Broadens Ranges and Targets US Start-Up E-Commerce Platform Temu Expands to Europe Gap to Cut Hundreds of Jobs in New Round of Layoffs Levi's Looks to Cut Denim's Water Impact Where It Most Counts

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Heritage Porcelain Brand Ginori 1735 Enters Lifestyle During Salone del Mobile, Ginori 1735 unveiled its redesigned Milanese flagship store and new homeware collection Domus as the latest iteration of the 300-year-old business' strategic move into lifestyle — a market that is expected to register a compound annual growth rate of 4.5 percent between 2022 and 2023, according to Global Market Insights. "Attention to detail in the store redesign is crucial as it highlights the craftsmanship and new materials used in Ginori 1735 products," Ginori 1735′s brand and product director Annalisa Tani told BoF. READ MORE

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