Abstract Book of the 5th World Conference on Climate Change and Global Warming
Year: 2025
DOI:
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Behind the Glamour: Factors of Financial Performance of French Luxury Leather Manufacturers
Elizaveta Golovanova
ABSTRACT:
French luxury brands are renowned for their resilience amid ecological and macroeconomic challenges, but their suppliers often face significant disruptions. This study examines the financial performance of 31 French luxury leather manufacturers over a 16-year period (2006–2021), focusing on return on assets (ROA) and return on sales (ROS). The comprehensive overview of French leather market, including statistics on implementation of corporate sustainability practices is provided. Using panel linear regression models with fixed effects, the analysis incorporates macroeconomic, market, and ecological variables, alongside a binary variable distinguishing four Hermès manufacturers as part of a big luxury conglomerate. The results demonstrate the overall resilience of the luxury leather sector. The findings reveal that Hermès manufacturers, operating within a big luxury conglomerate, are more influenced by interest rate fluctuations, that reflects their dependence on borrowing costs. Additionally, Hermès manufacturers show lower profitability and greater vulnerability to external factors such as drought conditions, fluctuations in meat production and in meat prices compared to other luxury firms in the sample. These results challenge the perception that large-scale luxury corporations inherently enhance resilience and efficiency within the luxury manufacturing sector. This study contributes to understanding the complex interplay between economic, market, and ecological factors in the financial performance of luxury leather manufacturers, offering insights for stakeholders aiming to strengthen resilience and profitability in this sector.
keywords: conglomerate, ecological, profitability, resilience, suppliers