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European luxury groups hedge bets on predicting China comeback

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European luxury groups hedge bets on predicting China comeback


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Reuters

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October 22, 2025

Europe’s luxury companies, from LVMH to Hermes and L’Oreal, are tentatively pointing to signs of a revival in China, but are also cautious about calling the turn on one of their biggest markets after a two-year slump.

L’Oreal’s beauty brands include Lancôme – Divulgação

The $400 billion luxury sector has been hit hard by the downturn in China, which accounts for around a third of global luxury sales as Chinese shoppers snapped up Louis Vuitton and Birkin bags in Shanghai malls as well as in New York and London.

Now there are glimmers of hope that the worst may be over even though China’s troubles continue, with economic growth that is likely to have slowed to a one-year low in the third quarter as a prolonged property downturn and trade tensions hit demand.

LVMH’s more upbeat sales report last week spurred an $80 billion rally in luxury shares on optimism about a China revival, but luxury companies reporting this week have painted a mixed picture.

“I’m always very careful about China because one quarter doesn’t make a trend. But overall the market has gone into positive territory,” L’Oreal chief executive Nicolas Hieronimus said after the company reported its first China growth in two years, though missed sales forecasts, sending its shares down around 6% on Wednesday.

Hieronimus said the key driver had been the beauty group’s luxury division, which includes high-end brands like Lancome and Helena Rubinstein skincare. He said investors should not get over-excited given China’s tough economic conditions. The big focus was the mega Singles Day shopping festival on November 11. “Many times at the end of the year it’s between China’s 11/11 and the holiday season in America and Europe. So fingers crossed,” he said.

French luxury goods group Hermes on Wednesday flagged a “very slight improvement” in China, but its third-quarter sales came in below expectations, hitting its shares which fell more than 4%.
Eric du Halgouet, executive vice-president Finance, told analysts that the important October Golden Week holiday in Mainland China had seen “more dynamic activity”.

“We can’t extrapolate to the entire quarter, but it’s an encouraging sign,” he said, adding there had been a marginal improvement in foot traffic helped by a focus on higher-value products from more expensive watches to jewellery. “That said, we must remain cautious,” he added. “There are some positive signs, such as the evolution of stock markets and the stabilisation of the real estate market in certain major cities. These are elements that are encouraging us.”

The focus on high-end luxury could curb the benefits for more mainstream luxury and consumer product companies, which are under pressure in China as consumers shift to local brands and tighten their belts given general economic uncertainty. Deutsche Bank said in a research note that companies like L’Oreal had limited upside in China with credit growth waning, and growth skewed towards certain provinces.

LVMH has been the most bullish so far on China. The luxury group’s shares had their best day in over two decades last week after signs of improved demand in mainland China where sales turned positive for the first time this year.

Hermes, Gucci-owner Kering, Richemont, Burberry and Moncler all gained on hopes the industry’s two-year downturn was bottoming out.

Cecile Cabanis, LVMH chief financial officer, said last week China was stabilising, with mid-to-high single-digit local growth. Chinese tourist spending was still sliding but less than before. There were signs of restocking of cognac brand VSOP.

She said Vuitton had seen a “very steep improvement” in China sales, while Dior and Sephora had seen a better performance.
“It’s very encouraging,” she said, though highlighted that the economic picture in China had not changed fundamentally.
“We still have the real estate market, which is complex. We still have a high unemployment,” Cabanis said. “So we consider it’s still going to take time until we have a rebound on China as a whole.”

© Thomson Reuters 2025 All rights reserved.



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Germany’s LuxExperience appoints Francis Belin as new CEO of Mytheresa

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Germany’s LuxExperience appoints Francis Belin as new CEO of Mytheresa



LuxExperience B.V. (NYSE:LUXE), the leading digital, multi-brand luxury group is delighted to announce the appointment of Francis Belin as new Chief Executive Officer of Mytheresa, effective January 1, 2026.

Francis Belin brings extensive and diverse luxury experience and proven leadership in driving international growth. He also brings a deep understanding of high net worth individuals worldwide. Most recently, as President Asia Pacific and overlooking global Luxury and Asian Art at Christie’s, Francis has achieved numerous milestones, cementing Christie’s position as the global market leader. He has played a key role in securing some of the most important collections and works of Art. Francis has been pivotal in several important strategic initiatives, including acquisitions such as Gooding & Company, a leading car auction house in California. Prior to that, he held various roles at Swarovski and Richemont, having started his career as a management consultant at McKinsey & Company.

Mytheresa parent LuxExperience has appointed Francis Belin as CEO effective January 01, 2026.
Belin, formerly president Asia Pacific at Christie’s, brings deep global luxury and HNWI experience.
He succeeds Michael Kliger, now LuxExperience Group CEO.
Belin will lead Mytheresa’s existing leadership team and drive the platform’s next phase of global expansion.

Francis Belin graduated from ESSEC in France and holds a diploma in International Management & Psychology from the University of Mannheim in Germany.

Following the tenure of Michael Kliger, who over the last 10 years successfully transformed Mytheresa into the leading luxury multi-brand digital platform, Francis Belin will succeed him as Mytheresa CEO and drive Mytheresa’s continued global expansion while delivering exceptional value for its customers and partners. Francis will report to Michael, who in his role as LuxExperience Group CEO, will continue to lead the overall strategy at Mytheresa, NET-A-PORTER, MR PORTER and YOOX. Francis will lead the current Mytheresa leadership team, including the Chief Commercial Officer, the Chief Growth & Site Management Officer, the Chief Marketing & Customer Officer, the Chief Buying & Group Fashion Ventures Officer and the Chief Creative Officer, who will all continue with their current responsibilities.

Michael Kliger, Chief Executive Officer of LuxExperience, said, “I am extremely delighted to appoint Francis Belin as the new Mytheresa CEO. With Francis we have found an exceptional leader, who is renowned for his customer-centric focus, global mindset, delivery of excellent results and collaborative leadership style. I am looking forward to supporting Francis as he leads the next exciting chapter for the Mytheresa business.”

Francis Belin adds, “I am truly honored to take on the lead of Mytheresa. I am deeply impressed by the robust business model and strong brand positioning that Mytheresa has established under Michael’s leadership. I look forward to working alongside the talented team to unlock Mytheresa’s next phase of global growth as an industry leader in the luxury market.”

Note: The headline, insights, and image of this press release may have been refined by the Fibre2Fashion staff; the rest of the content remains unchanged.

Fibre2Fashion News Desk (RM)



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EU names CPA as Bangladesh’s hub for Indo-Pacific maritime cooperation

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EU names CPA as Bangladesh’s hub for Indo-Pacific maritime cooperation



The European Union (EU) recently designated the Chattogram Port Authority (CPA) as Bangladesh’s focal point for its Indo-Pacific maritime information-sharing network.

The EU’s Critical Maritime Routes in the Indian Ocean (CRIMARIO) programme has been expanding the Indo-Pacific Regional Information Sharing (IORIS) platform into a central hub for secure operational coordination among maritime agencies.

It supports everything from incident reports and vessel tracking to geospatial analysis and joint responses to piracy, trafficking, fishing, marine pollution and search-and-rescue operations, a CPA press release said.

The EU has designated the Chattogram Port Authority (CPA) as Bangladesh’s focal point for its Indo-Pacific maritime information-sharing network.
The decision offers the country a larger role in a system used by over 150 organisations across 57 nations and may streamline how Bangladesh’s agencies use IORIS.
CPA officials attended the IORIS policy board’s third standing committee meeting last month.

The new EU decision offers the country a larger role in a system now used by more than 150 organisations across 57 nations, domestic media outlets reported.

It is also expected to streamline how Bangladesh’s agencies like the Navy, the Coast Guard, port authorities, customs, fisheries and emergency response units use IORIS.

CPA officials represented Bangladesh at the IORIS policy board’s third standing committee meeting in Manila last month.

Fibre2Fashion News Desk (DS)



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Birks sales surge on European acquisition, strong retail performance

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Birks sales surge on European acquisition, strong retail performance


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December 8, 2025

Birks announced on Friday a 16.2% uptick in half-year sales to $93.1 million, on the back of the Canadian jeweller’s acquisition of European Boutique, and a strong retail performance.

Birks

The Montreal-based company also logged an increase in third-party branded timepieces across multiple brands for the 26 weeks ending September 27, in addition to gains in sales of Birks branded jewelry and third-party branded jewelry.

Meanwhile, comparable store sales rose 6.3%, attributable to strong sales in all product categories, particularly in third-party branded timepieces, but also in Birks branded jewelry and third-party branded jewelry, the company added.

In light of the strong sales performance, Birks narrowed its earnings loss during the six months to an operating loss of $0.2 million, compared to a reported operating loss of $0.3 million in the prior-year period.

“Our net sales, gross profit and comparable store sales for the first half of Fiscal 2026 are higher than the corresponding period in Fiscal 2025 due in part to the acquisition of the European business but also due to our strong retail performance, which speaks to the strength of our product offerings, both in terms of our Birks branded products and our third-party branded watches and jewelry,” said Niccolò Rossi di Montelera, executive chairman of the board and interim CEO.

“I would like to thank our teams for their dedication and hard work. The growth achieved in the first half of Fiscal 2026 is a testament of our commitment to our customers and I am grateful for the unwavering efforts of all our employees which contributed to these results and the successful integration of the European stores.”

In July, Birks acquired the luxury watch and jewellery business of European Boutique from its founders, the Sutkiewicz family, for a purchase price of $9 million.

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