Newsletter

Market Pulse / Bottoms up

23/08/2016

Investors breathed a sigh of relief as first half results were by and large better than expected

Savigny Luxury Index Graph

 

 

 

 

The Savigny Luxury index (“SLI”) staged a relief rally this month, gaining over 7 percent whilst the MSCI World Index (“MSCI”) gained almost 4 percent. Better-than-expected first half results took some of the sting out of the sector’s most severe correction in seven years.

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Savigny Partners Newsletter

24/02/2015

Sector review

The Savigny Luxury Index lurched from crisis to crisis throughout the year, ending up bruised but not battered at the same level as the beginning of 2014.  This was in sharp contrast to the MSCI World Index (‘MSCI’), which gained 16 percent over 2014.  It has been a tough year for the luxury sector, which has been hammered by the slowdown of China, unrest in the Ukraine, protests in Hong Kong and currency headwinds. 

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Savigny Partners Newsletter

04/02/2014

Opening to Cosmetics

 

We revisited our SLI to decide whether or not to include some cosmetics companies, a sector which we had largely ignored in previous years on the grounds that the category was essentially sold wholesale and was prone to discounting.  We looked at a number of beauty groups but only three really stood out in terms of size and focus: L’Oréal, Coty and Estée Lauder.

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Savigny Partners Newsletter

13/02/2013

 

Sector Review

 

Wrestlemania

2012 was the arena of a fierce wrestling match between largely positive corporate results and hesitant economic news.  A nail-biting five rounds were fought over which no clear winner was declared until the last round:  the SLI won three rounds to two, rising 24 percent over the year, outperforming the MSCI by almost 12 percentage points.

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What’s next for fashion flash-sale sites?

19/07/2012

With contributions from Ceci Guicciardi, Brand & Commercial

A recession-proof proposition

The emergence of members-only, online flash-sale discounters in the early 2000’s leveraged the traditional need for luxury and premium brands to discretely dispose of excess stock, by capitalising on the opportunities presented by a fledgling e-commerce landscape. The business model was based on a simple proposition: to make high-end goods available at rock-bottom prices online, in an innovative digital declension of the traditional designer end-of-season sample sale.

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Savigny Partners Newsletter

What’s next for fashion flash-sale sites? 
With contributions from Ceci Guicciardi, Brand & Commercial

A recession-proof proposition

The emergence of members-only, online flash-sale discounters in the early 2000’s leveraged the traditional need for luxury and premium brands to discretely dispose of excess stock, by capitalising on the opportunities presented by a fledgling e-commerce landscape. The business model was based on a simple proposition: to make high-end goods available at rock-bottom prices online, in an innovative digital declension of the traditional designer end-of-season sample sale.

Read more

Savigny Partners Newsletter

27/01/2012

 

A tale of two halves

The Savigny Luxury Index (‘SLI’) outperformed the MSCI World Index (‘MSCI’) by 16 percentage points despite a string of severe beatings over the year.  It gained close to 8% over the year, relative to a decline of almost 8% for the MSCI.  Stripping out the effects of the Prada IPO in June, which mechanically boosted our index through the introduction of a large number of new shares, the SLI still ended the year up 3%. 

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