Daily LInks
1. LVMH, L’Oreal Recovery in China Fuels Optimism for Outlook: “What we’ve seen in China is a pretty quick bounce back for the consumption of beauty products.” Sales in Louis Vuitton stores in China are up about 50% in the past three weeks over the same period a year ago, while L’Oreal Chief Executive Officer Jean-Paul Agon said that sales in China turned positive in March and are on track for a gain of 5% to 10% this month. – Read More on Bloomberg
2. As coronavirus restrictions drag on, Americans shift online spending from stockpiling to entertainment: e-commerce spending in the U.S. is up more than 30% from the beginning of March through mid-April compared with the same period last year, while sales data reveals that many shoppers have shifted their focus to entertainment products such as books and games as they adjust to the new normal of life in quarantine. – Read More on CNBC
3. Investor Wendy Yu on Chinese Fashion: “I think there will be a natural return to retail and luxury over time, but this epidemic will inspire us to be more purposeful about our decisions and spending, which will, in turn, create new and improved benchmarks for brands to meet to be relevant.” – Read More on SCMP
4. As glory days recede, fashion and luxury companies face a reboot challenge: “Overheads are being reviewed,” LVMH CFO Jean Jacques Guiony, in a conference call with analysts last week. “Selling costs are being reviewed. Marketing costs, obviously, are being reviewed. So we are taking measures, I would say, more or less everywhere.” – Read More on S&P Global
5. Looking ahead, DTC brands start scenario planning for store re-openings: “I think people are preparing models [in which stores] will open as early as July and as late as October,” said Logan Langberg, principal at Imaginary Ventures, which has invested in Glossier and Everlane. – Read More on Modern Retail
6. RELATED READ: How Will the Market’s Buzziest Direct-to-Consumer Brands Fair in Light of COVID-19? “Many of those businesses are looking less viable than they once were,” pointing to Casper’s February IPO, which “valued the company approximately $600,000 lower than its last private fundraising round;” Brandless’ shuttering; Glossier’s suspension of “its color cosmetics line Play after lackluster sales;” and Outdoor Voices’ “reported $2 million monthly burn rate on $40 million of annual sales.” – Read More on TFL
