Richemont Archive

No Growth but No Panic in the Luxury Sector

LONDON, United Kingdom — Both the Savigny Luxury index (SLI) and the MSCI World Index (MSCI) ended up flat this month, with the SLI posting a small gain whilst the MSCI tipped slightly into negative territory. Valuations are stable despite unappealing growth prospects, underpinned by the defensive nature of a number of luxury goods stocks benefitting from strong balance sheets, the absence of pension issues …

Luxury Makers’ Dubious Dividends Make Them Target for Shorts

PARIS, France — Higher dividends at a handful of struggling posh-product makers are a luxury they may not be able to afford. So goes the bear case on companies such as Richemont and Tod’s SpA, both down more than 20 percent this year and both still squarely in the sights of short sellers. Lingering expectations that they will raise dividends even after reporting declining sales …

Luxury Watch Market Sobers Up

LONDON, United Kingdom — With the luxury watch market under pressure from a decline in sales to Russian, Middle Eastern and Chinese customers, who are suffering from the combined effects of low oil prices and an economic slowdown in some markets, luxury watch brands are championing steel models to appeal to more price-sensitive middle class consumers in both Western markets and Asia. But this shift to …