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Karine Lecchi, won the Creation Grand Prix of Paris, Ferrari aims to higher growth in 2019 and 2020 and the other news of the day.
Press review
Karine Lecchi awarded with the Creation Grand Prix of Paris
Karine Lecchi was awarded the prize for confirmed talent in the fashion category. On Thursday evening, in the the Hôtel de ville salons, Frédéric Hocquard, Deputy Mayor of Paris in charge of nightlife and cultural economy, praised the work of Parisian entrepreneurs in the fields of crafts, design and fashion.
Karine Lecchi has her studio a few blocks from Paris City Hall, started her brand in 2014 and works on an elegant silhouette, even towards a casual tailoring for women.
The work of the duo Marion Gauban Cammas-Ulysse Meridjen, who launched Proêmes de Paris in 2017, was recognized with the Emerging Talent Award. The young label takes an atypical approach, playing with writing games and drawing on literary inspirations.
The Creation Grand Prix, supported by Galeries Lafayette and the French Ready to wear federation, were initiated in 1994 and have existed since 2003 in this form.
Ferrari aims for further growth in 2019 and 2020
The Italian manufacturer has met or exceeded all the targets it had set for 2018.
“It has been a solid year” and “we are confident that we will achieve our 2019 objectives despite international tensions, from the customs tariff war to the Chinese slowdown, including Brexit and the volatility of the foreign exchange market,” said his boss Louis Camilleri, during a conference call with analysts.
Ferrari’s net profit jumped 46% in 2018 to 787 million euros, better than the expectations. According to the Factset Estimates consensus, analysts were expecting $701 million.
However, its turnover stagnated (+0.1%), at €3.42 billion, due to the decline in engine sales, a result that was generally in line with expectations (€3.44 billion). At constant exchange rates, the increase in sales was 3.2%, Ferrari said.
The famous brand with the raiser horse delivered 9,251 cars over the year, up 10.2% compared to 2017.
In the fourth quarter only, deliveries increased by 19% and sales by 1%.
Europe-Middle East-Africa remains the group’s main market, with 4,227 vehicles delivered in 2018 (+13.1%), followed by America (3,000 cars, +6.7%). Deliveries also increased by 12.6% in the China-Hong Kong-Taiwan region, to 695 vehicles, and by 7.8% in the rest of Asia, to 1,329 units.
Swatch worried about its sales in China
Swatch Group reported on Thursday a slowdown in its activity during the last three months of 2018 due to a contraction in demand in Asia and “very low” sales in France, resulting in lower than expected annual results and a sharp decline in the Zurich Stock Exchange share.
Sales grew by 5.7% at constant exchange rates in 2018 to FRF 8.48 billion (€7.42 billion), while analysts surveyed by Reuters anticipated 8.65 billion.
Net profit was also below expectations, although up 14.8% to CHF 867 million from the expected CHF 952 million, which will lead the Swiss group to propose a lower than expected dividend of CHF 8 per share.
“Clearly disappointing. Organic sales growth and margin declined in the second half of the year,” comments Jon Cox, analyst at Kepler Cheuvreux.
For Rene Weber of Vontobel, the problems encountered in the distribution channels of the Omega and Longines brands provide only a partial explanation for the negative trend in sales and margin.
Sales by Swiss watchmakers suffer from the lack of appetite of Chinese tourists, their main customers, with the depreciation of the yuan and trade tensions between China and the United States.
Swatch did not mention its high-end brands Breguet and Jaquet Droz on Thursday, nor the demand for Tissot, faced with competition from connected watches.
Nicolas Ghesquière could launch his own brand with LVMH support
According to rumours, LVMH has agreed to finance a new fashion brand launched by the famous designer Nicolas Ghesquière. According to information obtained by FashionNetwork.com, the luxury group agreed to finance Ghesquière’s project after its general manager, Bernard Arnault, was persuaded by his daughter Delphine Arnault.
She firmly believes in Ghesquière’s work. As Executive Vice President of Louis Vuitton, she appointed Ghesquière to head the artistic direction of women’s fashion for the luxury brand.
Ghesquière has made known his desire to launch his own label. In October, the creator had indicated in a French television program that, as part of his contract with Louis Vuitton, recently renewed, he had the right to create his own company.
LVMH has just announced that 2018 was a successful year, with overall sales growth of 10%. The timing would therefore be right for Nicolas Ghesquière, in the good graces of LVMH, which attributes much of its success to Louis Vuitton’s sales.
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