In the financial year 2016, the Top 100 luxury corporations are estimated to have generated a revenue of $217 billion in luxury goods, equivalent to only a 1% growth, compared to 5.8% the previous year at constant exchange rates. Nevertheless, 57 of the 100 groups ranked did increase their revenue, and 22 of them actually posted double-digit growth. Conversely, ten groups posted double-digit sales downturns in the year, among them two top-10 names, the Swatch Group and Ralph Lauren.
“However, the financial year 2016 seems to have marked a peak in the slowdown in the growth of luxury goods sales for the majority of corporations,” noted Deloitte, adding that “the initial aggregate figures for the 2017 financial year show improvements in performance.”
Above all, Deloitte observed that luxury groups’ margins have remained quite solid, and across the Top 100 they only detected a “mild dip.” For the eighty Top 100 groups which disclosed their margin percentage, on average there was only a 0.7% decline, the average margin being 8.8%. More than half of the groups reportedly improved their net income compared to the previous year. Of the 19 corporations generating a double-digit margin, nine were ranked in the Top 20. On the other hand, 11 corporations posted losses, compared to nine a year earlier.
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