21. April 2021 | 09:33 CET
RYU Apparel, Aston Martin, LVMH - Finding the right style in the boom!
Crazy stock market days these are! No sooner had Coinbase gained the listing on NASDAQ than cryptocurrencies peaked at a massive turnover and the stock market goes into reverse. Everything that was saddled up in a month, bitcoin had lost in just 48 hours. But volatility is currently a well-known phenomenon, and so far, everything has gone well. The technology stocks hold the flag high, and the NDX could make up a handsome 15% in just 6 weeks; the new high is now 14,065 points. However, it is shaky in airy height because the last real correction was already 2 months ago. Today we are looking at the style and luxury industry because it is often suitable for reducing the volatility in the portfolio thanks to its stable earnings.
time to read: 4 minutes by André Will-Laudien
Born in Munich, he first studied economics and graduated in business administration at the Ludwig-Maximilians-University in 1995. As he was involved with the stock market at a very early stage, he now has more than 30 years of experience in the capital markets.
RYU Apparel - Full throttle & with style in the market
RYU Apparel or "Respect Your Universe" has done well in the first six months since taking notes. The brand has been completely repositioned and Generation Z has become an enthusiastic customer. RYU's online presence is excitingly modern. The protagonists provide attractive, aspirational images for a media-driven society. Perfectly in-scene, the house fronts of Toronto or New York have never been seen so beautifully. The philosophy of CEO Cesara Fazari is to create an emotionally charged brand through the combination of image & sound, perfectly dynamic, hip and captivating. This is how you position a new brand.
In the field of social media, you use influencers and well-known testimonials for the promotional appearances - the group pull could not be created better. When the Nike brand launched in 1971, these fantastic marketing opportunities did not exist, but one element worked even then: word of mouth! This week, the focus is on US re-branding. Via Instagram, they are currently promoting a casting to participate in a RYU commercial, a perfect campaign for a young, confident target audience. CEO Fazari is also showing dynamism; he is in a hurry with his plans, as the long-term sales target for 2030 is to be USD 1 billion.
According to estimates, global e-commerce sales grew by about 20% in 2020 due to the pandemic and will reach global revenue of USD 4.2 trillion. By 2023 this figure will grow by another 50%, according to eMarketer. RYU is well-positioned to get this growth on its books as a fresh brand with high brand awareness.
The stock boom had snapped RYU out of its slumber in early December, with the share price going from CAD 0.15 to over CAD 0.25. Due to covid-related opening restrictions in flagship stores, the stock is currently consolidating at around CAD 0.11. As a result, this is a super opportunity to get back on board with "Respect Your Universe."
Aston Martin - When the electric car banishes the V8 to the race track
The traditional British manufacturer Aston Martin plans to produce pure combustion engines only for the race track from 2030. Electric cars and hybrids will then account for 95% of sales; today, this share does not exist. For the future, Aston Martin surprisingly gives the classic combustion engine a clear rejection and fully relies on the electrification of its models. Who would have thought that!
With the help of investors like Mercedes-Benz, the Company wants to push ahead with the conversion and realignment. Long overdue, say the climate protectionists, deadly sad argue the racing and classic car fans. But if Aston Martin CEO Tobias Moers has his way, every fourth or fifth new car should be an e-car by 2024. In the years that follow, the share of electrically powered vehicles will increase linearly, the Aston Martin CEO expects.
The Company's current 2020 annual report clarifies that after 2030, gasoline-powered vehicles will only be available for the racetrack or classic car enthusiasts. Still, these will then account for just 5% of annual sales. The bulk of sales will then be electric cars as well as hybrid vehicles.
As yet, few of the plans are visible in the showroom. Aston Martin is currently the only model to have equipped its Valkyrie super sports car with hydride technology. Mercedes-Benz has already been supplying combustion engines and e-drive components to Aston Martin since 2013 as part of strategic cooperation. The share has quickly doubled since October 2020 after the restructuring and is now stuck around EUR 22. Despite fully depressing the gas pedal, the 007 carmaker is not out of the woods yet. Whether the new strategy will help is questionable; instead of the share, one should probably rather buy a fancy car of the old type.
LVMH - The world of luxury now also in the blockchain
One of the best-known luxury groups is the French holding Company LVMH. Behind it are the euphonious luxury brands Louis Vuitton Moët Hennessy. The global Group was founded in 1987, but the individual brands have already united several hundred years of tradition. With a turnover of EUR 54 billion and a capitalization of EUR 317 billion, LVMH is a large value from the Euro Stoxx 50.
As announced yesterday, the traditional brand Cartier is now forming a blockchain consortium with Prada and LVMH. The goal is to create a smart solution for consumers to track the origin and authenticity of all luxury jewelry they purchase on the blockchain because this is where the highest level of counterfeit protection is available. The technology offered now allows customers to directly access product history and prove authenticity - a big step forward for an industry plagued by counterfeiting.
The Group had its annual general meeting last Thursday. The main topic was the demonstrated resilience in the pandemic and the extraordinary performance of the "Watches and Jewelry" division, which the Tiffany brand boosted. The American brand, acquired for USD 15.8 billion, was fully integrated into the Group at the beginning of this year. For the first quarter within LVMH, the label reported 9% sales growth. This performance led LVMH's watch and jewelry division to post a 132% jump in sales. LVMH stock has been a rock for years and has become a veritable missile since March 2020. It is currently trading at EUR 611, just below its all-time high. Here, luxury is fun in every direction!