French LVMH Withdrawing Spanish Textile Group

Recently, French luxury giant LVMH MOET & CHANDON Hennessy LV group said it is withdrawing shares from the Spanish Textile Group Sociedad Textil Lonia SA. LVMH has a 25% stake in the group.

Sociedad Textil Lonia SA is one of the main fashion groups in Spain. It has a Spanish premium brand Purification Garcia, and is an agent of CH Carolina Herrera of the American designer brand. The group was founded in 1997 by family members of Spanish fashion designer Adolfo Dom nguez.

It is reported that Sociedad Textil Lonia SA has 516 separate stores, and the total revenue in 2013 was 254 million euros, an increase of 10% over the previous year of 231 million euros, and net profit of 36 million 540 thousand euros. LVMH pointed out in its annual report of the 2013 fiscal year that its shareholding value is about 40 million euros, which means that the valuation of Sociedad Textil Lonia SA reaches 160 million euros.

　 Relevant Link: new brand development needs time Mango to lower revenue target

Because the new product line sales are not ideal, Spanish high street fashion brand Mango has to lower its medium-term revenue target. As part of the 10 year development plan, Mango launched its children's clothing, sportswear and lingerie product line and Violeta clothing brand last year. This year the brand also introduced a series of clothing for young people and mature women. Enric Casi, chief executive of Mango, said the new brand is expected to take several years to reach the sales level of the traditional product line.

Enric Casi acknowledges that the 2014~2017 revenue expectations in the past are too optimistic, and now decides to adopt a more conservative standard to set performance targets. Mango lowered its 2017 revenue target to 3 billion 270 million euros, down about 1/3 from its previous target of 4 billion 970 million euros.

　　 Mango In 2013, the total revenue reached 1 billion 846 million euros, an increase of 9% over the same period, accounting for 83% of overseas market revenue, and only 17% of its revenue came from the Spanish local market. Net profit rose 9% to 120 million 500 thousand euros, an increase of 78.74% over the previous year. Mango2014's investment budget for fiscal year is about 300 million euros, and is expected to be invested in new store construction, store renovation, logistics and IT system.