Shanghai - Christian Dior SE Chief Executive Officer Sidney Toledano is optimistic the European economy will do better in the coming years, especially with recently elected French President Emmanuel Macron’s promises to reform labor market regulations.
“We have a new president, I think this will be very positive
for the economy,” said Toledano in an interview with Bloomberg TV in
“I am optimistic about the economy and that the coming years
will be better. And our middle class will become upper class as we see happen
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Driven by a recovery in Chinese demand after President Xi Jinping’s anti-corruption campaign in late 2012 hurt the sector, luxury companies including Hermes International SCA and Gucci parent Kering SA have reported improved sales forecasts.
On the back of a new artistic director, continued revenue
growth and a 6.5 billion-euro [$7.3 billion] takeover by LVMH Moet
Hennessy Louis Vuitton SE, Dior shares have gained almost 80 percent in the
past 12 months. They added as much as 0.3 percent in early
Toledano said that
Unlike some other luxury brands, Dior did not see demand fall during the anti-graft drive, he said. Xi’s campaign clamped down on the culture of gifting expensive items to government officials.
“When we started in
Among foreign luxury labels, Louis Vuitton, Chanel, Richemont and Gucci all have an about 1 percent share, according to data from Euromonitor International. Dior trails with a 0.6 percent share in the country as of 2015, up from 0.4 percent in 2013.
The recent consolidation of control over Dior by LVMH’s Bernard Arnault, who offered minority shareholders 260 euros per share, will give the company more “fluidity” and align shareholders’ agendas, said Toledano.
The French billionaire was previously already chairman of Christian Dior with a 74 percent stake.“It will give some kind of synergy, although I don’t like the word synergy because it means reducing staff,” Toledano said. “I think we will hire more people and working in an even closer way with our LVMH colleagues."