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 Journal Article   Open Access   Published 
 Journal of Business and Management Revolution (ISSN 2435-7286)  Crossmark

Behind the glamour: Factors of financial performance of the French luxury leather manufacturers  2025, 4 (1): 1-18  DOI 10.37357/1068/JBMR/4.1.01

Elizaveta Golovanova 

Department of Law, Management, Economics and Politics, University of Marie et Louis Pasteur, Besançon, France

French luxury brands are renowned for their resilience amid ecological and macroeconomic chal-lenges, but their suppliers often face significant disruptions. This study examines the financial performance of 31 French luxury leather manufacturers over 16 years (2006–2021), focusing on return on assets (ROA) and return on sales (ROS). A comprehensive overview of the French leather market, including statistics on the 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 manufac-turers 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 luxu-ry conglomerate, are more influenced by interest rate fluctuations, which reflects their dependence on borrowing costs. Additionally, Hermès manufacturers show lower profitability and greater vul-nerability to external factors such as drought conditions, fluctuations in meat production, and 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 manufac-turers, offering insights for stakeholders aiming to strengthen resilience and profitability in this sector.
 
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The author(s) has received no specific funding for this article/publication.