Luxury at the crossroads

Luxury at the crossroads
  • Pininvest Analysis

Watches, fragrances and apparel form the backbone of consumer luxury brands

But by entertaining ambiguity about what luxury is, with various strategies to convince clientele of exclusivity and with intention to dominate luxury categories such as watches for some, companies make the theme difficult to define

Over time, some strategies have clearly been more successful than others

  • The combination of a core business in mid-range watches with higher end licenses (Michael Kors, Armani, Coach/Tapestry) has not been successful for Fossil FOSL/NASDAQ
  • Richemont CFRUY/OTC has over many years abandoned initial interests in the tobacco business to focus on jewelry (Cartier, van Cleef & Arpels), watches (Jaeger-LeCoutre and others) and writing (Montblanc)
  • Kering PPRUY/OTC – after a venture in sports with Puma (bought in 2007) – announced a renewed focus on luxury goods in January 2018
  • Hermès HESAY/OTC and Prada PRDSY/OTC never left the high-end, building a coveted brand name with single-minded attention to quality and reputation

Read our notes

Luxury at the crossroads • Updated:

Name Ticker Exchange Sector Industry Currency Cur.Price Mkt.Cap Perf. Vol. Risk Contrib. MDD
 
Burberry BURBY OTC Consumer Durables Luxury Brands USD 28.32 - 22.2% 32%   7% -19%
Chow Sang Sang Holdings CHOWF OTC Consumer Durables Luxury Brands USD 2.30 - 3.3% 3%   0% 0%
Chow Tai Fook Jewellery CJEWY OTC Consumer Durables Luxury Brands USD 8.54 - 0.5% 42%   4% -26%
Christian Dior CHDRY OTC Consumer Non-Durables Apparel, Footwear & Accessories - Major USD 128.50 - 37.3% 22%   1% -15%
Compagnie Financiere Richemont CFRUY OTC Consumer Durables Luxury Brands USD 7.38 - 13.4% 25%   6% -19%
Coty Inc. COTY NYSE Consumer Non-Durables Cosmetics & Personal Care USD 11.91 9.0 B 37.9% 53%   8% -37%
Fossil Inc. FOSL NASDAQ Consumer Non-Durables Apparel, Footwear & Accessories - Major USD 7.89 399 M -58.3% 67%   3% -63%
Hermes International HESAY OTC Consumer Durables Luxury Brands USD 72.71 - 30.8% 20%   4% -10%
HUGO BOSS BOSSY OTC Consumer Durables Luxury Brands USD 9.16 - -34.1% 31%   3% -43%
Kering PPRUY OTC Consumer Durables Luxury Brands USD 60.23 - 38.1% 30%   7% -21%
L'Oreal LRLCY OTC Consumer Non-Durables Cosmetics & Personal Care USD 57.78 - 23.7% 18%   3% -12%
Luxottica Group S.P.A. LUXTY OTC Health Care Eyewear & Frames USD 55.80 - -9.1% 12%   0% -14%
LVMH Louis Vuitton LVMUY OTC Consumer Durables Luxury Brands USD 89.48 - 49.5% 25%   7% -13%
Moncler MONRF OTC Consumer Durables Luxury Brands USD 40.63 - 15.3% 30%   4% -23%
PANDORA A/S PANDY OTC Consumer Durables Luxury Brands USD 10.30 - -16.6% 52%   4% -39%
Phillips-Van Heusen Corp. PVH NYSE Consumer Non-Durables Apparel, Footwear & Accessories - Major USD 99.92 7.4 B -13.5% 42%   6% -48%
Polo Ralph Lauren Corp. RL NYSE Consumer Non-Durables Apparel, Footwear & Accessories - Major USD 112.61 8.4 B -1.7% 34%   5% -37%
Prada PRDSY OTC Consumer Durables Luxury Brands USD 6.81 - -9.2% 40%   3% -29%
Salvatore Ferragamo SFRGY OTC Consumer Durables Luxury Brands USD 9.97 - -15.8% 39%   4% -30%
Swatch Group SWGAY OTC Consumer Durables Luxury Brands USD 13.86 - -9.3% 26%   4% -20%
Tapestry TPR NYSE Consumer Durables Luxury Brands USD 26.76 7.4 B -30.8% 47%   4% -52%
The Estee Lauder Companies EL NYSE Consumer Non-Durables Cosmetics & Personal Care USD 190.99 69 B 33.8% 29%   6% -20%
Tiffany & Co. TIF NYSE Services Luxury Retailers USD 125.08 15 B 19.6% 42%   7% -30%