Financial Evaluation of the Luxury Goods Industry

FINANCIAL REPORTING AND CONTROLLING |

FINANCIAL EVALUATION |

ANALYSIS OF THE LUXURY GOODS INDUSTRY |

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Abstract

To come up with the recommendations over investing in certain company of luxury goods market we had to conduct the following financial analysis of luxury goods industry. We had selected 4 top-ranked companies, such as LVMH, PPR, Coach Inc. and Richemont.

In this work we used several analytical methods such as: development of financial statements, the company’s fair share price evaluation with the industry multiples, and assessed the stock market activity with explanation of the recent trends.

The deepest analysis of the financial situation in the industry and comparison of capacities of listed companies could be done with the financial ratios method.

Financial ratios are calculated measurements taken to analyze the economic welfare of a business. The ratios compare financial statement data with stock market trading information for publicly traded companies. So we provide the profound analysis of companies’ financial situation with the help of this method.

The choice of above-listed companies is made due to the reason, that those are the industry leaders – largest worldwide good producers.

Table of content

Abstract 1

1. LVMH 4

1.1. Corporate Profile 4

1.2. Primary Business Activities (LVMH ) 4

1.3. Current Company Situation 5

1.4. Assessing the Future Prospect of the Company 7

1.5. Fair Share Price 8

2. PPR 10

2.1. Corporate Profile 10

2.2. Primary Business Activities 10

2.3. Current Company Situation 10

2.4. Assessing the future Prospect of the Company 12

2.5. Fair Share Price 13

3. Richemont 14

3.1. Corporate profile 14

3.2. Primary Business Activities 14

3.3. Current Company Situation 14

3.4. Assessing the Future Prospect of the Company 16

3.5. Fair share price……………………………………………………………………………………………………………………………………..17

4. COACH 18

4.1. Corporate profile 18

4.2. Primary...