Source: PARIS, Sept 30 (Reuters) - Louis Vuitton (LVMH.PA) has raised prices for monogram handbags and other leather goods considered classics by up to 9 percent in the euro zone, a source familiar with the matter said on Thursday.
The move reflects the rise in raw material prices such as leather and cotton, the source added.
"The increase will be of between zero and 9 percent, depending on the bag," the source said.
Louis Vuitton, which contributes half of LVMH's operating profit, also lifted prices, by 2 percent, in July.
LVMH shares, which rose as much as 2.43 percent after the news, were up 2.25 percent by 1441 GMT.
The price rise comes two weeks after Louis Vuitton decided to close Parisian shops an hour early to conserve stock ahead of the Christmas rush.
Louis Vuitton shops make up a significant portion of the French brand's western European revenue.
Analysts said the price increase was also probably intended to close the gap between Asian prices and European prices.
"They (Louis Vuitton) admitted last week they had a pricing gap problem, with Japan and China too high vs Europe," said luxury goods analyst Luca Solca at Bernstein in London.
Saturday, October 2, 2010
EEEEKKKKK!!!! Vuitton lifts classics prices up to 9 pct!!!
Source: PARIS, Sept 30 (Reuters) - Louis Vuitton (LVMH.PA) has raised prices for monogram handbags and other leather goods considered classics by up to 9 percent in the euro zone, a source familiar with the matter said on Thursday.
The move reflects the rise in raw material prices such as leather and cotton, the source added.
"The increase will be of between zero and 9 percent, depending on the bag," the source said.
Louis Vuitton, which contributes half of LVMH's operating profit, also lifted prices, by 2 percent, in July.
LVMH shares, which rose as much as 2.43 percent after the news, were up 2.25 percent by 1441 GMT.
The price rise comes two weeks after Louis Vuitton decided to close Parisian shops an hour early to conserve stock ahead of the Christmas rush.
Louis Vuitton shops make up a significant portion of the French brand's western European revenue.
Analysts said the price increase was also probably intended to close the gap between Asian prices and European prices.
"They (Louis Vuitton) admitted last week they had a pricing gap problem, with Japan and China too high vs Europe," said luxury goods analyst Luca Solca at Bernstein in London.
i love speedy louis vuitton
ReplyDeletei'm offcially doing the "EEEEKKKKKK" together with u on this!!
ReplyDeletewow..
the euro currency values dropped must really be reflecting on the sales, huh?
unlike the yen currency, stays stronger these days..
only go for limited edition,typical monogram bag are not my cup of tea.
ReplyDeleteI have a very important question- as someone who is about to buy their first Louis bag (I have several smaller pieces, clutches, etc.), I have finally decided that I want a Neverfull in damier ebene canvas. Alas, I'm not sure which size to get. I'm petite (5'2") so I think the GM would certainly be too big for me to use for everyday. I just can't decide between the PM and the MM. I want something that is big enough to hold wallet, keys, phone, and the occasional newspaper, but is also small enough that it won't be burdensome and won't look inappropriate if I take it to dinner, etc. I also want to make sure that the strap is long enough for me to comfortably carry the bag on my shoulder. Any suggestions would be much appreciated!
ReplyDeleteHi There!
ReplyDeleteVery informative and great blog! Love all your posts!
Am struggling between an Artsy MM, Neverfull Damier & Cabas Rivington.
I love Artsy for its casual yet elegant look but have heard many commented about the hard handle and not shoulder friendly. At the same time, I like Neverfull as well but so many out there using replica of this design.
What do you think? I am looking for a shoulder bag with ample space for everyday use. :)
Thanks in advance for your valuable opinion!
True. I am not into monogram bag and hate to see evryone carrying the same pattern whilst there are so many beautiful bags out there!!chnage the pirce again??? well, am sure LV will lose more Japanese clients, but not for Chinese!!!
ReplyDelete