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 23.69 - -22.4% 57%   6% -59%
Chow Sang Sang Holdings CHOWF OTC Consumer Durables Luxury Brands USD 1.10 - -51.4% 73%   1% -52%
Chow Tai Fook Jewellery CJEWY OTC Consumer Durables Luxury Brands USD 13.06 - 24.6% 47%   3% -42%
Christian Dior CHDRY OTC Consumer Non-Durables Apparel, Footwear & Accessories - Major USD 131.50 - 6.6% 38%   0% -37%
Compagnie Financiere Richemont CFRUY OTC Consumer Durables Luxury Brands USD 9.34 - 18.7% 47%   5% -40%
Coty COTY NYSE Consumer Non-Durables Cosmetics & Personal Care USD 7.17 5.5 B -35.8% 107%   9% -77%
Fossil Inc. FOSL NASDAQ Consumer Non-Durables Apparel, Footwear & Accessories - Major USD 10.30 528 M 32.1% 127%   8% -68%
Hermes International HESAY OTC Consumer Durables Luxury Brands USD 107.85 - 37.7% 36%   3% -31%
HUGO BOSS BOSSY OTC Consumer Durables Luxury Brands USD 6.25 - -34.8% 65%   6% -60%
Kering PPRUY OTC Consumer Durables Luxury Brands USD 69.62 - 6.5% 49%   5% -45%
L'Oreal LRLCY OTC Consumer Non-Durables Cosmetics & Personal Care USD 73.43 - 24.3% 36%   3% -26%
LVMH Louis Vuitton LVMUY OTC Consumer Durables Luxury Brands USD 124.91 - 33.0% 44%   4% -36%
Moncler MONRF OTC Consumer Durables Luxury Brands USD 59.09 - 23.1% 55%   3% -40%
PANDORA A/S PANDY OTC Consumer Durables Luxury Brands USD 24.78 - 95.0% 50%   4% -49%
Phillips-Van Heusen Corp. PVH NYSE Consumer Non-Durables Apparel, Footwear & Accessories - Major USD 101.23 7.2 B 2.6% 89%   10% -71%
Polo Ralph Lauren Corp. RL NYSE Consumer Non-Durables Apparel, Footwear & Accessories - Major USD 111.47 8.1 B -5.2% 62%   6% -50%
Prada PRDSY OTC Consumer Durables Luxury Brands USD 12.80 - 77.3% 52%   3% -44%
Salvatore Ferragamo SFRGY OTC Consumer Durables Luxury Brands USD 9.59 - -7.1% 69%   4% -49%
Swatch Group SWGAY OTC Consumer Durables Luxury Brands USD 13.79 - 1.8% 43%   4% -42%
Tapestry TPR NYSE Consumer Durables Luxury Brands USD 34.06 9.4 B 20.4% 83%   8% -63%
The Estee Lauder Companies EL NYSE Consumer Non-Durables Cosmetics & Personal Care USD 250.02 90 B 15.1% 41%   4% -34%
Tiffany & Co. TIF NYSE Services Luxury Retailers USD 131.46 16 B -0.2% 25%   1% -17%