1. Luxury loses some lustre
Sales of designer handbags and shoes are expected to stagnate this year, according to a study published by Italian luxury goods association Altagamma and global consultants Bain. Already sales have slipped 1% at current exchange rates, compared with €251bn in 2015. Thriftier Chinese consumers, currency swings, Brexit, the US presidential election and European terrorism all affected consumer confidence and tourist flows.
2. In the bag, or not?
Are they or aren’t they? American luxury brand Coach was said to be in talks with Burberry about a possible merger. Burberry’s shares rose more than 8%, but a later report said talk of a tie-up was "completely speculative". Both companies remain mum. Exane BNP Paribas analyst Luca Solca told Business of Fashion that a merger of Coach and Burberry "would primarily be a merger of problems".
3. The face of expansion
American beauty conglomerate Estée Lauder has acquired Becca Cosmetics from Luxury Brand Partners for an undisclosed amount. Estée Lauder owns brands like Clinique, Bobbi Brown and MAC. Insiders suggest that the group paid around US$200m, with Becca set to generate roughly $80m in revenue this year.
4. All-day breakfast boost
Did someone say all-day Egg McMuffins? McDonald’s shares surged after posting third-quarter profit and revenue that beat expectations. Gains at the company, which is in the midst of a turnaround, were attributed largely to improvements in its all-day breakfast offering. Revenue came in at $6.42bn in the period ended September 30 and earnings of $1.28bn were reported.