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New World Perspective's avatar

Great write up, the follow up book 'Kapferer on Luxury' is also worth a read.

It's becoming increasingly hard to find true luxury listed co's. While many have elements, they are diluting the luxury with premium or fashion brand/product. LVMH has Louis Vuitton and others, but it also has businesses like Sephora - hardly luxury. Kering has Gucci, but then has it's new glasses business, hardly luxury.

I don't count either of these holding co's as true luxury anymore, though at the right valuation they'll obviously still be appealing.

Realistically for companies that truly adhere to the quite strict 'luxury' criteria, at present I find only a few companies; Hermes (if we forgive them their foray into makeup and skincare), Ferrari (if you ignore the licensing division), The Italian Sea Group and probably Richemont. Of these, only TISG and CFR currently have reasonable (arguably cheap) value multiples, but hoping the others will come down if the world collapses next year.

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Mahesh's avatar

Excellent article on a fascinating industry and a leading company in the sector. Thank you.

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