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Feb 15
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LONG
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Narrator
Reporter/Host
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2026 is the Year of the Horse. The narrator notes that "it's easier to market the horse" for Western houses that already feature them in logos or motifs, explicitly naming "Gucci, Celine [LVMH], Longchamp and of course, Hermes [RMS]." Chinese consumers are demanding "fresher takes" and cultural authenticity, rejecting lazy marketing (e.g., just a "red handbag with a horse on it"). Brands with inherent equine DNA (Hermes, Celine) can leverage this year's zodiac animal organically, giving them a competitive edge in capturing the projected rebound in holiday spending. Long LVMH (parent of Celine) and RMS (Hermes) as the primary beneficiaries of the Year of the Horse marketing cycle. Continued "economic slowdown" in China and a structural shift where consumers are "more inclined to support domestic labels" could cap upside for Western brands. |
CNBC
Why Chinese New Year is so important for luxu...
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Feb 14
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LONG
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Narrator
Financial Reporter
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The speaker states that "2026 is the year of the horse" and "it's easier to market the horse than last year's zodiac animal... Western luxury houses already feature them... like Gucci, Celine [LVMH], Longchamp and of course, Hermes [RMS]." Brands with inherent equestrian branding (Hermes, Celine via LVMH) have a distinct competitive advantage in 2026 marketing campaigns. This allows them to authentically connect with Chinese consumers and capture the projected market rebound more effectively than competitors who must manufacture a connection to the zodiac animal. LONG these specific luxury houses as they are best positioned to capitalize on the Lunar New Year spending catalyst. Continued macroeconomic weakness in China (housing crisis, unemployment) and a structural shift in consumer preference toward domestic Chinese brands. |
CNBC
How Lunar New Year could help China's luxury ...
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Feb 14
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LONG
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Luigi de Vecchi
Chairman, Capital Markets, Citigroup EMEA
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De Vecchi observes that while traditional Milanese are reserved ("drive a Fiat 500, not a Ferrari"), the influx of wealthy foreigners is "sometimes flashy" and prone to showing off. The demographic shift from understated local wealth to ostentatious expat wealth creates a new, high-velocity local market for luxury goods. The "flashy" new residents are the exact target demographic for Ferrari and high-end fashion houses. LONG. Milan's transformation into a cosmopolitan "playground" directly benefits luxury conglomerates. Local backlash against gentrification or "flashy" displays of wealth leading to regulatory crackdowns. |
Bloomberg Markets
Why The Ultra Rich Are Moving to Milan
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Feb 13
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LONG
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Dave Magers
CEO of Mecum Auctions
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Mecum sold $460 million in cars in January. The CEO states that for "monumentally significant" cars, payment was received "pretty much immediately," indicating ample liquidity among buyers. The "Wealth Effect" is clearly active. If high-net-worth individuals are deploying hundreds of millions into vintage cars with immediate cash settlement, the consumer at the very top of the pyramid is healthy. This spending power spills over into other heritage luxury goods (handbags, watches, fashion). LONG. Bullish signal for top-tier luxury conglomerates catering to the ultra-wealthy. Wealth taxes or significant changes in capital gains tax structures could dampen demand for luxury collectibles. |
Bloomberg Markets
Ferrari's Flying Off the Auction Block for Mi...
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Feb 12
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LONG
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Deborah Aitken
Senior Analyst, Bloomberg Intelligence
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"Gross margin up over 100 pips beating consensus nicely... We saw growth 1q 7 percent, four Q 10%. So some momentum building." Hermès is demonstrating "Veblen good" characteristics where demand accelerates despite price hikes. The company is successfully passing on costs (5-6% pricing power) and expanding margins despite macro headwinds (tariffs/taxes) that are hurting the broader sector. Vertical integration (hiring 250 artisans/year) insulates them from supply chain shocks. LONG. The acceleration in revenue combined with margin expansion suggests Hermès is decoupling from the general luxury slowdown. Escalation of global trade tariffs beyond current pricing power absorption; slowdown in the ultra-high-net-worth consumer segment. |
Bloomberg Markets
Hermès Sales Surprise on Robust Birkin Bag De...
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Feb 12
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LONG
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Deborah Aitken
Senior Analyst, Bloomberg Intelligence
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"Leather goods is 45% sales... operating margin up over 100 bips... 5 to 6% pricing which they'll carry through into 2026." Hermes has decoupled from the general luxury slowdown (unlike LVMH/Gucci) due to extreme scarcity and pricing power. They are expanding margins despite macro headwinds, proving "Veblen good" status. Long quality/resilience. severe global recession impacting ultra-high-net-worth spending. |
Bloomberg Markets
Stocks Climb; Nuveen to Buy Schroders; Anthro...
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