Specialist
VP at Guccio Gucci SpA
Agenda
- Recovery scenarios from coronavirus crisis, including progressive opening programmes, online growth sustainability and like for like (LFL) expectations
- Supply chain challenges of lockdown
- Cost reduction opportunities across rent, labour and CAPEX and impact on Louis Vuitton's distribution strategy
Questions
1.
What are the expected organic like-for-like growth rates across retail and wholesale throughout 2020 in Europe for Louis Vuitton? What is driving that demand?
2.
What is the expected online sales penetration for Louis Vuitton in Europe and how does that compare to the expected online penetration for the brand globally?
3.
You mentioned that there will be only one person in the store every 20 square metres. What is the average size of the LV store in Europe?
4.
What foot traffic and top line trends have you observed in China for the industry and for Louis Vuitton specifically?
5.
Why are the secondary brands struggling compared to the larger brands?
6.
How sustainable is LV’s growth through 2020?
7.
Are you expecting a similar trend in Europe to China when restrictions are lifted, with a surge in demand near 30-40% across the primary brands?
8.
What do the European stores need to do to remain viable without those international customers? Do you think there will be product mix changes? How can the European stores remain viable?
9.
What is the share of classic to seasonal products within Louis Vuitton?
10.
Are you expecting there to be a significant build up of inventory in the newness category? Do you expect any corresponding changes to Louis Vuitton’s pricing strategy?
11.
What will Louis Vuitton do with the excess stock? Will that be written off at the end of the year?
12.
Can Louis Vuitton cancel some of the forward-looking stock for the Autumn/Winter collection?
13.
Are you concerned about the supply levels in 2020 or 2021 due to atelier closures?
14.
Could you outline the typical fixed vs variable costs through the P&L for Louis Vuitton for the D2C retail estate?
15.
What does rent typically cost as a percentage of net revenue?
16.
What are the opportunities to reduce labour costs?
17.
What are the opportunities to reduce CAPEX for 2020-21 or further?
18.
What percentage of the CAPEX budget do you think will be spent in 2020 if we consider that there will be no refurbishments, but there will be money spent on IT developments?
Access the full Transcript
Submit your details to read this transcript in full.
The information, material and content contained in this transcript (“Content”) is for information purposes only and does not constitute advice of any type or a trade recommendation and should not form the basis of any investment decision.This transcript has been edited by Third Bridge for ease of reading. Third Bridge Group Limited and its affiliates (together “Third Bridge”) make no representation and accept no liability for the Contentor for any errors, omissions or inaccuracies in respect of it. The views of the specialist expressed in the Content are those of the specialist and they are not endorsed by, nor do they represent the opinion of, Third Bridge. Third Bridge reserves all copyright, intellectual and other property rights in the Content. Any modification, reformatting, copying, displaying, distributing, transmitting, publishing, licensing, creating derivative works from, transferring or selling any Content is strictly prohibited
