Core Viewpoint - Luxury companies like LVMH and Kering are facing significant volatility in their stock prices due to hedge fund positioning and concerns over AI-related market fluctuations, as they attempt to recover from a two-year slowdown in sales [2][3][8]. Group 1: Company Performance - LVMH, the largest luxury group with a market cap of €260 billion ($308.49 billion), experienced its largest one-day stock drop since 2020 after CEO Bernard Arnault expressed caution about future growth, which contrasted with a previous 12% increase following an optimistic market update in October [4][10]. - Kering's shares rose by 11% after reporting fourth-quarter revenue that fell slightly less than expected, with new CEO Luca de Meo indicating "early, fragile" signs of recovery [6][11]. - Hermes, known for its Birkin bags, saw a modest 2.5% increase in shares despite a solid quarter, trading at 45 times forward earnings, more than double that of LVMH [11]. Group 2: Market Dynamics - The luxury sector is experiencing heightened volatility due to a high number of short positions taken by hedge funds, which can lead to significant price swings when unexpected results are announced [5][8]. - The luxury market's dependence on affluent consumer spending makes it particularly sensitive to fluctuations in the U.S. stock market, which is currently experiencing volatility driven by AI trends [8][9]. - Hedge funds are increasingly influencing market movements, with many trading based on news and data points, which can exacerbate price volatility in luxury stocks [7][10]. Group 3: Investor Sentiment - Investors are actively switching their bets among luxury brands, looking for potential turnaround stories as the sector navigates a slow recovery [11]. - Kering's CEO has highlighted the stock market as a key indicator of luxury spending in the U.S., warning that a correction in the AI market could negatively impact European luxury groups [9]. - The current market environment is characterized by nervousness among investors, with many seeking to sell amid high valuations and concentrated market conditions [10].

So a fantastic quarter for Hermes, but it wasn't thanks to perfume or beauty or anything like that. It was really all thanks to the Birkin bag, Deborah. And my first question would be, is this because people are buying and investments or is it genuinely that they have dollars to spend on luxury items.Because they would be very different reads of the US and and foreign consumer. Hi. Yeah, it's it's very much domestic driven and it is by those individuals who generally own more than one of the product within ...

Core Insights - The strong performance of Hermes in the recent quarter is primarily attributed to the sales of the Birkin bag, rather than other product categories like perfume or beauty [1] - The growth in sales is largely driven by domestic consumers, particularly those who own multiple products from the brand [2] Sales Performance - Leather goods now account for 45% of sales, down from 55%, indicating a diversification in product offerings that includes homewares, ready-to-wear, and jewelry [3] - The company reported a growth of 17% in Q1 and 10% in Q4, showing positive momentum [3] Operational Strengths - Hermes maintains a vertically integrated model, which is a core strength, allowing it to manage raw material sourcing and labor effectively while keeping margins healthy [4] - The company hires around 250 new artisans annually at one production facility, contributing to its craftsmanship and quality [4] Financial Metrics - Hermes achieved a gross margin increase of over 100 basis points, surpassing consensus expectations, along with an increase in operating margin [5] - Despite challenges such as tariffs and increased corporate tax in France, the company delivered solid financial results, showcasing impressive performance [6]

It's 5AM in New York City. Good morning. I'm Vonnie Quinn with your Bloomberg Brief.Let's get you set up for the day. Traders paring back rate cutbacks following that payrolls report. Jobless claims up next.Stocks recovering from another scare trade while anthropic inching closer to a deal that would value the farm at $350 billion. And midterm anxieties rise for President Trump as the House passes a bill targeting his levies on Canadian imports. So futures are pointed higher today.Now, yesterday, we had ano ...

Core Insights - Younger generations are increasingly favoring nontraditional investments, such as collectibles, over traditional options like stocks and real estate [1][2] - Influencer Logan Paul advocates for these nontraditional investments, citing personal experiences and potential high returns [1][4] Investment Trends - Logan Paul auctioned a rare Pokémon card he purchased for $5.3 million, which he plans to sell for an estimated $7 million to $12 million in early 2026, potentially yielding a profit of $2 million to $7 million [3][4] - Collectibles, including Pokémon cards, have reportedly outperformed the stock market over the last two decades, with Pokémon cards increasing in value by 3,261% over 20 years [4][6] Performance Comparison - According to AES, collectibles have produced a nominal annual return of 6.4% and a real return of 2.4% from 1900 to 2012, which is lower than long-term stock market returns [5][6] - In the past year, Pokémon cards have increased by 46%, surpassing Nvidia's 35% increase and the S&P 500's 17% year-to-date growth [6]

人事变动 - Hermès 任命 Grace Wales Bonner 为男士成衣系列创意总监 [1] 公司战略 - Hermès 聘用了一位以融合高级定制与广泛文化研究而闻名的 35 岁设计师 [1]

Hermes sales grew as the Birkin bag maker continued to attract wealthy shoppers — especially in the US https://t.co/Ps23Ycgbht ...

Core Insights - Hermes reported a 9.6% increase in third-quarter sales, indicating a slight improvement in the key market of China, outperforming its peers as affluent consumers spent on luxury items priced at $10,000 and above [1] Company Performance - The sales growth of 9.6% in the third quarter highlights Hermes' strong positioning in the luxury market, particularly in China, where wealthy shoppers are increasingly purchasing high-end products [1] Market Trends - The performance of Hermes suggests a positive trend in luxury spending among affluent consumers, especially in the Chinese market, which is crucial for luxury brands [1]

Louis Vuitton, the latest luxury name to report results, giving us some clues about how how the high-end consumer is holding up. Robert Frank is here with that story. Better than the low-end consumer, right.>> Certainly. And it was really interesting stock action this morning with LVMH. It was down initially.Now it's bouncing back after that initial fall. And that's because it was a weak quarter for the world's largest luxury company. Overall sales down 4%.Its core fashion and leather goods. That's the big ...

Market Trends - A Birkin bag was sold for 860万欧元 (approximately $10.1 million), setting a new auction record for handbags [1]