Louis Vuitton, the world's biggest luxury brand in terms of sales, is planning to dampen its expansion worldwide and focus on high-end products to preserve its exclusive image, according to Bernard Arnault, CEO of parent LVMH.
Arnault said Louis Vuitton, which recently launched a major television ad campaign, was not planning to open boutiques in second and third-tier cities in China to "avoid becoming too commonplace."
Owner of LVMH, world’s largest luxury group and France’s wealthiest man, Bernard Arnault is reported to be under criminal probe over his activities in Belgium, the financial daily De Tijd reported on Saturday. The probe follows a preliminary investigation opened last year into a capital increase of EUR2.9 billion (USD3.9 billion) in LVMH’s Belgian holding company Pilinvest, prosecution spokesman Jennifer Vanderputten told the Flemish-language paper.
French luxury giant LVMH said it remains confident for 2013 despite releasing Tuesday slower growth sales figures for its fashion, watches and perfumes businesses.
Neverfull - the name of Louis Vuitton's best-selling handbag - sums up its parent LVMH pretty well, since even if it snapped up all of the world's last remaining independent luxury brands, it would still have room for more.
Neverfull – the name of Louis Vuitton's best-selling handbag – sums up well its parent LVMH : even if it snapped up all of the world's last remaining independent luxury brands, it would still have room for more.
The French group's insatiable appetite for acquisitions has been tolerated by investors while its cash cow Louis Vuitton, which contributes half of group profit, grew revenues at a rate of more than 10 percent in the past two decades.
LVMH reports its sales of jewellery and watches have dropped in mainland China and are being offset by Chinese nationals buying overseas. Swiss watch exports to China fell 19 percent in May, according to the Federation of the Swiss Watch Industry. Sales have declined as economic growth has weakened and as the Chinese government’s austerity campaign has curbed demand for high-end products popular for business gifts.
France's financial market regulator said on Monday it had fined luxury firm LVMH a record 8 million euros (USD10.4 million) for failing to inform markets it was raising its stake in elite handbag and scarf maker Hermes.
Hermès International SCA said Wednesday it has filed a lawsuit with a Paris commercial court against rival LVMH Moët Hennessy Louis Vuitton SA, the latest salvo in a long-standing dispute between the two companies.
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LVMH will throw open the doors of its Louis Vuitton workshops and Hennessy cognac cellars at the weekend in the latest salvo of an advertising war among luxury groups to show off the craftsmanship behind their brands.
Starting on Saturday, the world's top luxury group by sales and market value will also offer behind-the-scenes tours of Christian Dior's salons, Guerlain's perfume plant outside Paris and Fendi leather shoe and handbag workshops in Italy.
Louis Vuitton's new CEO has quit suddenly from the helm of luxury group LVMH's top brand because of health reasons, LVMH said on Tuesday.
The world's largest luxury company said Jordi Constans would be replaced by Michael Burke, CEO since February of Bulgari, the Italian jeweller that LVMH added to its stable last year.
LVMH said Constans' sudden departure after less than a month was due to the discovery of a "significant health issue which requires that Mr Constans focus on this priority".