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."
LVMH on Thursday posted lower profits and margins on the back of a 3 percent rise in first-half sales that came in below expectations.
The world's biggest luxury group, owner of Hennessy cognac and the Louis Vuitton fashion brand, made a profit from recurring operations of EUR2.576 billion (USD3.47b), down 5 percent from the same period a year earlier.
LVMH posted first-half revenue growth of 3 percent, or 5 percent on a like-for-like basis.
LVMH and eBay have settled a six-year legal battle in which the online auction site was accused of allowing users to sell knock-off luxury goods.
In a joint statement released on Thursday, the two companies said they had agreed to settle ongoing litigation and put "cooperation measures" in place.
World’s largest luxury group, LVMH, has recently acquired Singapore-based Crystal Jade restaurant chain for around USD100 million. The deal will give LCapital Asia, the private equity division of LVMH, a 90 percent stake in the restaurant group. With over 130 restaurants in over 10 countries in Asia, Crystal Jade includes a mix of Chinese fine dining, casual dining, and specialty restaurants.
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.