Top Spanish luxury groups grow revenue by nearly 10%, totalling $3.25 billion
today Feb 12, 2020
The luxury goods sector is growing in Spain. According to the ‘Global Powers of Luxury Goods 2019’ report published by consulting firm Deloitte, based on 2017 financial year data, aggregate sales for the four leading Spanish luxury goods groups grew 9.8%, reaching a total of $3.253 billion, equivalent to $813 million (€744.5 million) on average.
Four Spanish groups, Puig, Tous, Textil Lonia and Festina Lotus, were ranked once again by Deloitte among the world’s top 100 in the industry. Puig, holder of the fragrance and fashion licenses for Carolina Herrera, Nina Ricci, Paco Rabanne and Jean Paul Gaultier, was ranked 28th overall, one position lower than the previous year. In the financial year in question, Puig generated a revenue of $2.181 billion (€1.998 billion), up 8.1% over the previous year. Its net income margin was 11.8%.
Jewellery producer Tous held on to 76th position overall, with sales for $415 million (€380 million), posting a 10.5% growth over the previous year. Textil Lonia, with luxury label Purificación García and the CH Carolina Herrera licence, slipped three places into 80th, generating sales for $389 million (€356 million), equivalent to a growth of 1.6%, while improving its net income by 8.9%.
The last of the four Spanish luxury groups in the top 100 worldwide was watch brand Festina Lotus, ranked 89th, one position lower than the previous year. The group, with its brands Festina, Lotus, Candino, Jaguar and Calypso, generated sales for $268 million (€245 million), up 5.3% over the previous year.
According to the Deloitte report, Spain ranked ninth among the countries for number of companies featured in the top 100 table. The leading nation was Italy, with 24 companies, and average sales per company of $1.439 billion (€1.318 billion). France came first in terms of revenue per group, with $8.288 billion generated on average by the 7 French groups included in the ranking. Among them were the top two groups worldwide: LVMH, with a revenue of $27.995 billion, and Kering, with a revenue of $12.168 billion.
Consumers are key focus for the future
The ‘Global Powers of Luxury Goods 2019’ report indicated that luxury goods sales worldwide have been growing, despite the economic slow-down in China, the Eurozone and the USA. The sector’s main challenges are digitalization, the increasing relevance of Millennial consumers and the explosion of Gen Z consumption.
“Companies are re-assessing the worth of their brand heritage and history for new consumers. They are adopting an omni-personal focus, placing consumers at the core of their strategies, even above distribution channels. To do this, they are relying on the support of high-tech and digital tools,” concluded the report.
The 100 luxury groups listed in Deloitte’s worldwide ranking generated a total revenue of $247.0 billion (€226.301 billion), with an average growth rate of 10.8%. Of these groups, 76% recorded a rise in revenue, and nearly half of them posted double-digit growth.
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