Richemont sees future in leather goods
Luxury titan Richemont is upping investment into its fashion and leather goods brand Chloe. As sales at the Parisian womenswear and accessories label have continued to rise, its parent company plans to open eight new stores over the remainder of the year. It’s also under the helm of new designer Natacha Ramsay-Levi, who will debut her first collection at the Paris Fashion Week this fall. Richemont is hoping that Ms. Ramsay-Levi’s designs can push Chloe further and extend its seven-year growth spurt even further.
Richemont’s share price is up 18% so far this year
SOURCE: Yahoo Finance
Richemont may be better known for its watch and jewelry brands like Cartier and Van Cleef & Arpels that it is for leather and fashion. But that’s beginning to change. The company’s chairman, Johann Rupert, has been putting together a strong portfolio in the area for the last few years, including Parisian couturier Azzedine Alaia and British suitmaker Dunhill. Chloe, however, has been a particular bright spot for the company.
Chloe’s chief executive, Geoffroy de la Bourdonnaye, said in an interview: “the last two years we had strong growth at a time when hardly any luxury brands were growing. We really gained market share.”
In the quarter ending March of this year, Richemont’s sales of leather goods rose an enviable 11%. This performance was driven by young women turning to Chloe as an alternative to the high price point owned by Hermes and the ostentatious branding that accompanies Chanel and Louis Vuitton. While the company does not break out Chloe’s sales individually, Exane BNP Paribas analyst Luca Solca estimates that the brand’s sales have been growing at double-digit percentages for the past three years.
Dominion holds Richemont in its Global Trends Luxury Fund.
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