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Reuters Breakingviews: LVMH’s painful upmarket move

Wednesday, Oct 16, 2013 - 04:32

Oct. 16 - LVMH sales growth slowed down in the third quarter, disappointing analysts. It seems they’re paying the price for an upmarket move.

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Today I'm breaking news why the high and -- market is proving a tough sell for Louis Vuitton. European that's up yet again song just the man to tell us that yet but I guess Al -- paying the price for chip stock market is is is this is the story and -- -- attempt. Forever that's the best explanation we can and an -- is just publishing revenues. Numbers for now they don't break it down really. He -- ways that we could and for that but what looks like differently. What they called the luxuries that led the current fast and division which includes lead in the tunnel affect in brands -- -- -- deal yeah. Let's say yourself slowing down considerably in the third quarter. And probably because of the shift -- implementing we -- which is to take the bags but market because the initial. But two of those 30024. Dollars apiece. Type of backs that animus towards them for doing all of that. Fashion brands that within campaign you know PP Yamaguchi. Neighborhoods. -- it -- that company. Is proving very profitable but also very competitive and maybe talk to and I was in the -- who. Hi you know high middle luxury market that is. 700 to 1000 bags and and people on retiring and what works now threatening weather in new -- in Russia China you name is that I'd have about -- the market explain what a lot of people already occupying -- Yeah and as you said in your piece that this this business and the market proving its crown this the creditors Shaw's Elysee. What what do they do that I am device stay in this market I'm at it if -- sales continue to be heads drive the market continues to be disappointed. So I thought. Hit as much as they need to prove themselves they need to imitate that I don't think it's I think well they used they they say could take eighteen month -- middle of that. And it's expected sales to slow down a bit and the company is. Again so robust companies it's a conglomerate to put guys up and under the the funny thing is that what works in this. Fashion and luxury group. He's not lecturing not fashion but what I'm fashionable which is the distribution -- -- -- Storms. The drinks business which -- champagne and Petra which they've been. Rumored to be telling for a long time and that's put providing them brawl -- robust numbers and there. But you know format the -- management Marc Jacobs is leading. Has been -- it's okay when he left because. There was us. And predicting. Gaudin says because he didn't agree -- strategy over and started implementing it. Or because he simply -- the company and he. Saved he wanted to approach to Alter that interest. When -- get a quick word. On another story that old strawberry is written norm. Germany. Greens have I walked how's it looks a red light greens out and yes -- aren't. Looks like is immigrant coalition. What does it mean for Europe it -- them most. It develops and -- flew from the beginning. Or left -- is that it doesn't mean that much for Europe because both parties have operative it pretty much been up in agreement and every single move. Throughout the -- crises that might have been dot differences on. The week to view and we managed politically in the crisis that they agree on the basics and actually. What we think it's that the eurozone crisis is reason it. Going to be sideshow in this coalition talks. The most important things will be at speed social Democrats who have followed the Expedia. The minimum wage with -- -- and confused about -- technical and and then whether they get to finance ministry. And rumored candidate is that your investments in different from the ECB. We know him well world renowned well. He sent exactly where you are sitting on a number of occasions that thank you very much indeed give -- some. I'm if you wanna I check out our US breaking news show about every day twelve birdies in 1730 GMC. I'm -- problems sources.

Reuters Breakingviews: LVMH’s painful upmarket move

Wednesday, Oct 16, 2013 - 04:32

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