A Louis Vuitton logo is observed outside the retailer at Hong Kong’s Tsim Sha Tsui buying district on March 10, 2013. Louis Vuitton, the world’s most significant luxury brand by sales, has place up the prices of its non-leather handbags in most markets because the beginning from the year, broker HSBC stated inside a note sent to clients.
PARIS (REUTERS) – Louis Vuitton, the world’s biggest luxury brand by sales, has place up the rates of its non-leather handbags in most markets given that the beginning from the year, broker HSBC mentioned within a note sent to customers.
The broker stated the cost hikes, based on its own retailer observations, had been meant to address the brand’s “ubiquity” dilemma longer term but they could possess a unfavorable influence on volumes in the brief term.
LVMH, the parent company of Louis Vuitton, declined to comment around the HSBC note.
Canvas items make up about two thirds of Louis Vuitton’s total accessories sales and yield gross margins of 90 per cent against 75 per cent for leather bags, in line with analysts’estimates.