French luxury brand tycoon Bernard Arnault in China

BEIJING — French billionaire and luxury brand magnate Bernard Arnault is in China this week, social media posts showed, the latest visit by a foreign executive keen to reconnect to the world's second-largest economy.

The world's second-richest man after Elon Musk and chairman of LVMH group, Arnault was seen in Beijing visiting the upscale SKP mall and the Arnaulthe Sanlitun Taikoo Li shopping center Tuesday, posts widely circulated on Weibo showed.

He was then spotted in the southwestern city of Chengdu on Wednesday, where he toured the city's International Finance Center and other upscale stores, posts said.

Chinese state media also reported the visit was taking place, citing the social media videos.

Arnault is accompanied by two of his children -- Delphine, who heads the Dior perfume and fashion brand, and Jean, who is director of watch development and marketing at Louis Vuitton -- videos showed.

China is critical to the luxury market, and before the pandemic made up a third of all global luxury goods spending.

The pandemic hit the industry hard, with China's share of the market sinking to 17 percent in 2022, according to analysts at UBS, who have said that 2023 will be the "year of the Chinese consumer".

"The Chinese clientele is much more important than it was in 2019," LVMH's financial director Jean-Jacques Guiony recently told journalists.

Arnault's LVMH group -- which includes dozens of brands including Louis Vuitton, Givenchy, and Kenzo -- has continued to post strong revenue and profit growth despite global economic headwinds.

Arnault has said he is "optimistic about the Chinese market".

Agence France-Presse

Nike tops estimates despite hit to profit margins

NEW YORK, United States - Nike reported flat profits on higher sales Tuesday in results that topped estimates and lifted shares as strong demand helped counter the drag from heavy discounting due to excessive inventory.

Profits for the quarter ending at Nov. 30 came in at $1.3 billion, the same as in the year-ago period while revenues jumped 17 percent to $13.3 billion.

"Consumer demand for Nike's portfolio of brands continues to drive strong business momentum in a dynamic environment," said Chief Financial Officer Matthew Friend. "We remain focused on what we can control."

In the wake of supply chain problems in 2021, retailers ramped up deliveries in 2022 but have struggled to align product supply with demand. Excessive quantities of merchandise has forced retailers to liquidate goods at low prices.

In the most recent quarter, Nike's gross margin declined compared with the prior quarter due to higher markdowns, especially in North America, Nike said.

Profit margins were also pressured by higher freight and logistics costs, as well as increased marketing expenses.

But those dynamics were countered by solid demand across most markets, including North America, where sales surged 30 percent from the year-ago period.

In China, where Nike's results have been dented by repeat Covid-19 restrictions, sales slipped three percent. However, that was better than the 16 percent tumble in the prior quarter.

Shares jumped 6.9 percent to $110.30 in after-hours trading.

Agence France-Presse

Amazon opens new ‘4-star’ retail store in New York

NEW YORK – Amazon has opened a new retail store in New York on Thursday selling a range of products from the online colossus that gets top ratings from customers.

The brick-and-mortar outlet in New York’s trendy Soho neighborhood will sell consumer electronics, kitchen, home, toys, books and games, and “chose only the products that customers have rated 4 stars and above, or are top sellers, or are new and trending,” Amazon said in a statement.


Amazon has previously opened physical stores that sell books, and has had pop-up outlets in some locations, but Amazon 4-Star is a new concept that offers a variety of goods in different categories.

“We created Amazon 4-Star to be a place where customers can discover products they will love,” a company statement said.

“Amazon 4-Star’s selection is a direct reflection of our customers – what they’re buying and what they are loving,” it added.

Amazon, one of the world’s most valuable companies whose growth has made founder Jeff Bezos the world’s richest person, has been in recent years moving increasingly to physical stores.

It has opened more than a dozen Amazon Books stores that sell top-selling titles and some additional merchandise. And it has acquired the grocery chain Whole Foods, which has several hundred stores.

Amazon has also introduced a handful of concept Amazon Go grocery stores that operate without cashiers, with purchases automatically scanned and billed to customer accounts. /kga

source: business.inquirer.net