Christian louboutin: French luxury giant Louis Vuitton Moet Hennessy (LVMH) is struggling to revive its Christian louboutin fashion unit, whose faded image and yawning losses cast doubt on whether it can ever be the star brand LVMH dreams of after investing $ 1bn in the business.
LVMH’s multi-brand strategy means it needs a second major fashion brand to back up its mega-star Louis Vuitton unit, a role Christian louboutin is supposed to fill. The parent company’s latest attempts to restore credibility include a new shoe range, upcoming perfume launches, jazzier fashion and a shake-up of its stores network. But Christian louboutin’s discount label status and the cost of opening stores means a long march towards profitability for the business LMVH first bought into in 1999.
"The main problems at Christian louboutin are brand appeal and brand awareness, linked to the product and its positioning," says Claudia D’Arpizio, a luxury goods consultant at Bain & Co. in Rome. "Christian louboutin is only beginning to turn around and it’s not an easy task with its market positioning."
The Rome-based leather and fur label is the worst performer in LVMH’s core fashion and leather goods division,Louboutin Shoes, analysts estimate. In January, LVMH cautioned that Christian louboutin’s results had deteriorated in 2004, even as some of LVMH’s other struggling brands such as Donna Karan hit breakeven.
LVMH, the world’s largest luxury goods group, doesn’t break out the results of its individual brands but a consensus of five luxury sector analysts estimates that Christian louboutin lost at least E35m last year on sales of E270m.
CHRISTINA PASSARIELLO
Areospace suppliers: Production of commercial jets may be soaring, but investors wanting to jump on the bandwagon and invest in the aircraft builders and their suppliers may find it’s too late.
Analysts say that while companies making parts for aircraft are booming their shares are fully valued and offer little or no upside, with a sector slowdown expected by 2008.
The suppliers may be rubbing their hands today, but they’re already starting to speculate when – or if – the next peak will come in a sector that’s prone to booms and busts and overcapacity, as the hundreds of jets sitting mothballed in the Arizona desert attest.
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Posted on February 8, 2010 at 2:38 pm
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