Measuring Performance in the Luxury Industry: Is there a Difference in Performance Between the top and Bottom Players in the Industry?

Abstract This paper presents a methodology that consists of a Z-score function applied on a set of indicators for the luxury industry and then standardized to obtain a ranking of the companies on a scale between 10 and 100. To measure the performance for the top 5 LVMH, Estee Lauder, Richemont, Kering, Essilor Luxottica, and bottom 5 Aeffe, Tribhovandas, Van de Velde, Mulberry, Trinity companies (based on Deloitte global ranking in 2019) in the luxury industry and to unveil which are the performance drivers. By applying this methodology it can be made a comparison in performance between the top and the bottom companies in the luxury industry. The performance score is calculated for ten year…