Arnault said he was confident LVMH would increase

Louis Vuitton slows expansion to protect image

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, said Bernard Arnault, chief executive of parent LVMH.

Mr. Arnault said publicly for the first time that the brand’s wide footprint risked making it too commonplace, and analysts said the decision explained the recent drop in sales growth at Louis Vuitton in recent quarters.

Louis Vuitton https://www.dolabuy.su/ , which generates more than half cheap replica handbags of LVMH’s operating profit, has been opening shops in the past decade in places as remote as Mongolia.

Story continues below advertisement

“The group’s strategy now is to limit store openings,” Mr. Arnault said at the group’s annual results presentation. “We want to focus on leather products with high value added.”

Louis Vuitton replica louis vuitton bags , which is known for its LV embossed handbags, has started offering customers made to order bags in exotic skins and created invitation only spaces in its shops.

Instead of opening new boutiques, he said, Louis Vuitton will expand existing ones, as well as offer customers a more personal relationship.

Mr. Arnault said Louis Vuitton cheap replica handbags , 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.”

Analysts said Mr. Arnault’s comments mean Louis Vuitton would probably not open shops for some time, a strategy that helped boost revenues in the past.

“This means that short term growth should be more moderate, as we have started replica designer handbags to experience for a few quarters,” said luxury analyst at Exane BNP Paribas Luca Solca.

“But the good news is that their expectations on China are good, and that the fourth quarter has started to show an acceleration on the third quarter, albeit a modest one.”

Story continues below advertisement

Mr. Arnault warned that an appreciation of the euro in 2013 could hurt the group’s cheap louis vuitton bags from china business and implied Louis Vuitton could raise prices. Louis Vuitton increased its prices in Europe in October. Mr. Arnault said he was confident LVMH would increase its turnover despite Europe’s uncertain economic environment.

He said the outlook for the global economy in 2013 was good, helped by expectations of 2 per cent GDP growth in the United States and 8 per cent growth in China.

The group’s results follow concerns raised earlier this month by No. 2 luxury goods maker, Compagnie Financire Richemont SA, about the pace of growth in China, the industry’s biggest engine of growth.

The luxury goods sector suffered from a slowdown in demand in China in the second half of the 2012 due to the leadership change and a crackdown on gifts to officials, but industry executives said market trends had improved in recent weeks.

British luxury brand Burberry Group PLC, which was one of the first major brands to warn about worsening trading conditions in China in September, said earlier this month consumer sentiment there had improved.

China’s New Year falls this year in February as high quality designer replica handbags wholesale opposed to January last year, affecting year end demand and results fake designer bags in 2012, luxury brands have said.

Story Discount Replica Louis Vuitton Bags continues below advertisement

In 2012, LVMH made a profit from recurring operations of 5.921 billion ($8.04 billion) on revenue of 28.1 billion, broadly in line with market forecasts.

The French group said sales rose 8 per cent in the last three months of the year on a like for like basis, after the previous quarter’s 6 per cent expansion.

Like for like growth at the group’s fashion and leather unit, which includes Louis Vuitton, came in at 5 per cent in the fourth quarter, as during the preceding three months.

LVMH did not publish growth figures for Louis Vuitton, saying said the brand enjoyed “double digit growth” in 2012.

Referring to Cline, much replica louis vuitton bags from china smaller replica louis vuitton bags in size than Louis Vuitton, replica louis vuitton Mr. Arnault said that the work of creative director Phoebe Philo appealed to customers worldwide and that the French luxury brand produced “exceptional results.”

Shoe brand Berluti, which last year launched its first ready to wear men’s collection by former Zegna designer Alessandro Sartori, will invest in widening its network of shops, Mr. Perfect Quality Louis Vuitton Replica Arnault said.

Story continues below advertisement

Mr. Arnault said the loss making brand, which is headed Perfect Quality Louis Vuitton Replica by his son, Antoine, had the potential to generate several hundred thousands of euros in sales and become profitable in three years.

LVMH is stepping up investment in men’s wear, as is its rival PPR, with its acquisition of Italian tailor Brioni to tap demand in Asia and position itself for future growth in emerging markets.

The group’s wines and spirit division, which makes Hennessy cognac, also improved in the fourth quarter with like for like sales up 9 per cent against 6 per cent in the third quarter.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

Create your website with WordPress.com
Get started
%d bloggers like this: