We’ve handpicked a few company updates from the week, to give you a snapshot of how global markets and brands are performing.
Kim Kardashian’s brand Skims valued at $4bn
As celebrity influencers go, they don’t get much bigger than Kim Kardashian. So, it comes as no surprise that her shapewear brand, Skims, has been valued at $4bn (£3.09bn) following its latest round of fundraising.
The Series C funding round has raised $270m (£208.8m), which values the company at $4bn, an increase from its $3.2bn valuation last year.
And the secret to success? Skims says its ability to maintain “unprecedented momentum” as well as the ability to “capture consumer interest and evolve alongside its community.”
The brand is on track to achieve net sales of $750m (£580.2m) in 2023.
Asia drives growth for LVMH
LVMH, the luxury group which owns brands including Louis Vuitton, Dior and Fendi, has posted a revenue hike of 15% to €42.2bn for the six months to June 30, in its latest market update.
Owned by the world’s richest man, chairman and CEO Bernard Arnault, a resurgence in China following lockdown restrictions being lifted helped boost sales across Asia by 23%.
Europe was close behind, rising by 22%, also aided by the return of tourists, who took advantage of favourable exchange rates.
But the US was LVMH’s weakest region by far, with organic revenue rising by only 3%. This was “partially due to local consumers buying items abroad, but also due to mounting economic problems and a step back from spending after two strong years boosted by government stimulus payments,” says Pippa Stephens, senior apparel analyst at data and analytics firm, GlobalData.
The group announced earlier in the week that it will be a premium partner of the Paris 2024 Olympic and Paralympic games, with its jewellery brand Chaumet designing the medals and Moët Hennessey providing drinks for the hospitality programmes
“This bodes well for its performance in Europe next year, as it will significantly boost visibility and awareness of its offering,” Stephens adds.
US declines hits Puma’s sales
Sportswear giant Puma has posted another impressive set of results for the six months to June 30, despite a sales decline in the US.
Sales beat company expectations, growing €394.2m to €4.3bn for the first half, largely driven by footwear, which rose 19.9%, with strong demand for its football, baseball, and running categories.
Sales for the APAC region (including Greater China) performed the strongest, achieving currency adjusted growth of 26.0%. EMEA witnessed similar growth with sales up 25.2%.
However, sales in the Americas were down 2.7%. Global brands have all been affected by a slowdown in the US economy, which has been driven by a mixture of inflation, volatility in the jobs market and dampened consumer spending.
While Latin America remained strong, North America consumers slowed down their spending amid inflationary pressures, and the brand’s reliance on off-price wholesalers also impacted growth.
In May 2023, the sportswear heavyweight announced the expansion of its partnership with Formula 1, with a multi-year deal, enabling it to further capitalise on the growing popularity of the sport.
Elsewhere, Puma announced partnerships with notable athletes across athletics, football and tennis, such as rising sprinting star Julien Alfred and high-profile footballer Xavi Simons.
Stephens says: “It’s choice of partnerships across a range of different sports help to generate broad appeal for the brand. Puma also continues to establish itself as a streetwear player, with its collaboration in June 2023 with up-and-coming fashion brand Players, to release a Y2K inspired trainer.
“The launch of this on-trend shoe, will enable it to compete with the likes of New Balance, with styles such as the New Balance 530 proving extremely popular among consumers for its early noughties’ aesthetic,” she adds.
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