Finimize - 👜 Hermès versus Gucci

Luxury handbags at dawn | Brits are big spenders |

Hi Reader, here's what you need to know for February 21st in 3:11 minutes.

💸 Choosing which stocks to buy is tricky in itself, let alone deciding how much you’re willing to buy them for. So join StoryTrading’s Ben Rabizadeh for How To Pick A Stock Market Winner on Tuesday, and find out how to invest in the right stocks for the right price. Get your free ticket

Today's big stories

  1. Hermes gave a disappointing quarterly earnings update
  2. T. Rowe Price just laid out five key themes you can profit from this year – Read Now
  3. UK retail sales in January rose by their most in nine months

Showstopper

Showstopper

What’s Going On Here?

Hermès posted weaker-than-expected quarterly results on Friday, probably because no one’s made a biopic about its salacious history yet.

What Does This Mean?

When a $9,000 Birkin bag takes an average of 15 hours to make, there are only so many that Hermès can churn out on any given day. That’s made keeping up with demand tricky, which is why sales from the luxury giant’s leather goods and saddlery division – which makes up nearly half its total revenue, because rich people need saddles – fell 5% compared to the same time in 2020 (excluding the effect of currency swings).

So to make sure this doesn’t happen again, Hermès said it’s planning to open new production sites by 2024, in hopes of manufacturing around 7% more leather goods every year. But even that was a downgrade from a previous target, and unimpressed investors sent the luxury player’s stock down 8%.

Why Should I Care?

The bigger picture: At least Kering’s fine.
Hermès’s misfortune doesn’t speak to the rest of the industry, with Kering’s share price climbing 8% following its own earnings update late last week. The company said that the release of a new Gucci collection and the hit movie House of Gucci brought more attention to its flagship brand last quarter, helping the segment’s revenue rise by a much better-than-expected 32% (tweet this). And since Gucci makes up nearly 60% of Kering’s total revenue, that helped overall revenue beat expectations too. As for costs, there was only one: inflicting Jared Leto’s Italian accent on the world.

Zooming out: Hold my digital bag.
There could be another way for Hermès to generate some extra income: Morgan Stanley thinks luxury-branded NFTs could become a $56 billion market by 2030, as well as make up as much as 7% of luxury companies’ revenue by then. And since digital bags cost a lot less than real ones to produce, they’d give Hermès’s profit a much bigger boost too.

Copy to share story: https://www.finimize.com/wp/news/showstopper/

🙋 Ask a question

Analyst Take

How To Invest In This Year’s “Abnormal Normality”

How To Invest In This Year’s “Abnormal Normality”
Photo of Reda

Reda, Analyst

What’s Going On Here?

Every year, T. Rowe Price – a global investment giant that manages over $1.5 trillion – publishes a market outlook for the next 12 months.

And now that its outlook for 2022 has arrived, I thought it was worth looking into.

Because its team thinks five themes are going to dominate markets this year – one they’re describing as a period of “abnormal normality”.

Themes like slowing growth as supply finally catches up with demand, and a shifting backdrop as we go from “easy” to “tight” central bank policy.

So that’s today’s Insight: T. Rowe Price’s five themes for 2022, and how you can profit from them.

Read or listen to the Insight here

SPONSORED BY LEDGER

Make your crypto go further

If you think your crypto could be working harder for you, staking might be the way to go.

And there’s no better place to start making crypto grow than Ledger Live. Here’s why:

It’s quick and easy to use. You can get started in just a couple of minutes, and use the Ledger Live app to check in on your crypto whenever you want, wherever you are.

You’re in safe hands. Ledger’s known for its industry-leading security standards, thanks to its signature Ledger hardware wallet.

You can stake multiple coins at once. Make the most of your favorite crypto, since Ledger supports everything from dot to cosmos to ether.

Discover how far your crypto can go: start staking with Ledger today.

Stake Your Crypto

Rewards are not guaranteed. Ledger provides no advice or recommendations on use of staking services.

Hard Bargain

Hard Bargain

What’s Going On Here?

Data out on Friday showed that UK retail sales rose by the most in nine months last month, and the country’s retailers didn’t even need to go to any effort to make it happen.

What Does This Mean?

Omicron might’ve spooked the UK over Christmas, but it’s been water off a duck’s back since then: Brits have been getting straight back to normal, and spending more on gas to get them from A to B. They’re still keen on home improvements too, with furniture sales rising by 17% and electrical appliance sales by 16% compared to the month before. All this helped drive retail sales almost 2% higher than in December – the most significant monthly uptick since last April, when non-essential stores reopened after the country’s third lockdown. It also means sales were almost 4% higher than they were before the pandemic in February 2020, so take that, Covid.

Why Should I Care?

Zooming in: Retailers play hard to get.
These strong numbers came despite the fact that retailers – whose costs have climbed significantly in the last year or so – couldn’t offer the same sprawling January discounts they normally do. And not only were shoppers not getting money off, they were actually paying a lot more than at the same time last year: data out last week showed UK consumer prices were 5.5% higher than in January 2021 – the biggest jump in 30 years.

The bigger picture: Rate hikes can’t stop, won’t stop.
The strength of this and recent jobs data might be enough to convince the Bank of England that the British economy can handle its third-straight interest rate hike next month. That’s arguably a good idea, given that inflation is still more than double the central bank’s 2% target, and upcoming energy price rises could only send it higher. Some investors even think it’ll raise rates by 0.5% – rather than its usual 0.25% – for the first time since 1997.

Copy to share story: https://www.finimize.com/wp/news/hardbargain/

🙋 Ask a question

💬 Quote of the day

“A bird doesn’t sing because it has an answer, it sings because it has a song.”

– Maya Angelou (an American poet, memoirist, and civil rights activist)
Tweet this

SPONSORED BY PENFOLD

You wouldn’t treat your other investments like this…

Your pension will probably be the biggest investment you ever own.

So why do so many of us lose sight of how much we’re earning, not to mention accept it as a given when we lose track of pots from old jobs?

With Penfold, you can transfer all your old pensions to one pot and let its powerful digital pension technology grow your money for you.

You get to choose from four investment plans, all managed by BlackRock and designed to help you reach your savings goals. Penfold will even claim your 25% tax relief bonus for you.

And if you want to get into the nitty-gritty, take a deep-dive with Penfold’s Explore Your Pension tool and track your pension’s growth from one month to the next.

Unlock your pension’s potential today: download Penfold.

Power Up Your Pension

When you support our sponsors, you support us. Thanks for that.

🎯 On Our Radar

  1. Mary Shelley is old news. Cheesecake Factory is the true force behind Frankenstein.
  2. Shaq’s wealth generation secret. Never mind basketball: the man’s been investing in franchises.*
  3. Your tech is always waiting for you. That might not be a good thing.
  4. This decade’s pretty good so far. But it’s got nothing on the nineties.
  5. A whole country watched planes land on Friday. Trust the Brits to turn a storm into live entertainment.

When you support our sponsors, you support us. Thanks for that.

🌎 Finimize Live

😎 You’re in the zone

A savvy investor like you loves to hear about a good opportunity, so a whole zone of them will be right up your street. Come along to Your Guide To Opportunity Zones, and find out what they are, why they matter, and how you could make a lot of money by investing in them.

🎉 How To Pick A Stock Market Winner: 6pm UK time, February 22nd
🎨 Getting Started With NFTs: 5pm UK time, February 23rd
🌿 Getting To Grips With ESG Investing: 6pm UK time, February 24th
🏡 Your Guide To Opportunity Zones: 5pm UK time, February 25th
🙌 Setting Your Crypto Strategy Up For Wealth Creation: 6pm UK time, 28th February
🎨 How NFTs Are Resculpting The Art Industry: 5pm UK time, March 1st
🖼 How To Diversify Your Portfolio With NFTs: 5pm UK time, March 2nd
🤔 How Regulation Could Impact Your Crypto: 6pm UK time, March 3rd
🌟 How To Pick A Metaverse Winner: 7pm UK time, March 4th
🚀 Everything You Need To Know About The Metaverse: 6pm UK time, March 8th
🧐 How To Value NFTs: 5pm UK time, March 9th
🥊 The Art Of Beating The Market: 6pm UK time, March 14th
🍀 How To Analyze Sustainable ETFs: 6pm UK time, March 15th
👩‍🎨 NFT Investing Strategies Tailored To You: 5pm UK Time, March 16th
🌲 How To Pick The Best ESG Stocks: 6pm UK time, March 28th

❤️ Share with a friendYour Referrals: 0

Thanks for reading Reader. If you liked today's brief, we'd love for you to share it with a friend. If they sign up on your unique link, you’ll earn some sweet swag.

Share your unique link:

https://finimize.com/invite/?kid=177ZWC

You stay classy, Reader 😉

We’d love to hear your thoughts. Give feedback

Want to advertise with us too? Get in touch

Image Credits:

Image credits: evolucian - Shutterstock | anastasiia agafonova and Runrun2 - shutterstock

Preferences:

Update your email or change preferences

View in browser

Unsubscribe from all Finimize Emails

😴

Crafted by Finimize Ltd. | Bow Bells House, Bread Street, London, EC4M 9HH

All content provided by Finimize Ltd. is for informational and educational purposes only and is not meant to represent trade or investment recommendations. You signed up to this mailing list at finimize.com or through one of our partners. © Finimize 2021

View Online

Older messages

🤩 Nvidia breaks records

Thursday, February 17, 2022

There's no escaping Walmart – seriously | Nvidia's outdoing itself | TOGETHER WITH Hi Reader, here's what you need to know for February 18th in 3:09 minutes. 🎨 Everyone's talking about

🏖 Airbnb never wants this vacation to end

Wednesday, February 16, 2022

Americans will spend if they want to | Airbnb never wants to see an office again | TOGETHER WITH Hi Reader, here's what you need to know for February 17th in 3:05 minutes. 🔨 They say a worker's

🏃 Brits join the Great Resignation

Tuesday, February 15, 2022

Intel has a plan A, B, and C | Brits are done with Dolly's nine-to-five | TOGETHER WITH Hi Reader, here's what you need to know for February 16th in 3:01 minutes. 🥛 Whatever your investing

🇷🇺 The Russian threat is growing

Monday, February 14, 2022

Russia edges closer | India needs a quick fix | TOGETHER WITH Hi Reader, here's what you need to know for February 15th in 3:05 minutes. 😌 You've worked hard on finessing your investing

🚗 Volvo's breaking records

Sunday, February 13, 2022

Brits are claiming victory | Volvo's breaking records | TOGETHER WITH Hi Reader, here's what you need to know for February 14th in 3:00 minutes. 💔 Maybe cash isn't your one true love after

The Daily StockTips Newsletter 05.20.2022

Friday, May 20, 2022

I've Screened the Market for what I Consider the Best, Safest, & Most RELIABLE Profit Opportunities! (Published 7:30 AM ET MON-FRI) ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

Forget the ‘Fed put’

Thursday, May 19, 2022

Bloomberg Evening Briefing View in browser Bloomberg China is seeking to replenish its strategic crude stockpiles with cheap Russian oil, a sign Beijing is strengthening its energy ties with Moscow

📉 Xiaomi loses out to Apple

Thursday, May 19, 2022

This calls for an airconditioner | EasyJet needs you | TOGETHER WITH Hi Reader, here's what you need to know for May 20th in 3:01 minutes. ♻️ Why choose between big bucks and good ethics? Join

💸 Money Cheat Sheet: New Role, Who’s This?

Thursday, May 19, 2022

Including a special note from Ellevest Career Coach LaToia Burkley. ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

While aiming for a 'soft landing,' Fed Chair Powell warns that cooling inflation without plunging into a recession will be 'challenging'

Thursday, May 19, 2022

There are several paths to "a soft or soft-ish landing," Powell said, but Russia's invasion of Ukraine and supply-chain issues make them risky. View in browser Business Insider Business

Are you missing out on potential returns?

Thursday, May 19, 2022

Here's my advice. ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

The Daily StockTips Newsletter 05.19.2022 (AMKR & SAFM REMOVED)

Thursday, May 19, 2022

I've Screened the Market for what I Consider the Best, Safest, & Most RELIABLE Profit Opportunities! (Published 7:30 AM ET MON-FRI) ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

Fintech News Issue #364

Thursday, May 19, 2022

Recent events in the crypto space. Even stablecoins were affected by the recent downturn in the market See Online Issue #364 - Did Terra Luna Disrupt The Queen's Plans? 2022-05-19 This number of

Retail calamity

Wednesday, May 18, 2022

Bloomberg Evening Briefing View in browser Bloomberg US consumers are shifting their spending from merchandise to services, a worrying trend for retailers that spent the past two years profiting from a

😳 China comes crawling back

Wednesday, May 18, 2022

Sorry about the “crackdown” thing | UK inflation beats the rest | TOGETHER WITH Hi Reader, here's what you need to know for May 19th in 3:05 minutes. 👩‍🔧 Our vehicles are getting more eco-friendly