Source: LOUIS VUITTON / Louis Vuitton
The global supply crisis is not only affecting small businesses but also luxury brands. Louis Vuitton has announced they will be raising their prices to combat the issue.
As per Hype Beast the French fashion house will look to up their retail costs as a response to the shortage supply that is plaguing commerce internationally. On Thursday, February 10 CEO of LVMH Moët Hennessy Louis Vuitton Bernard Arnault revealed the label’s future plans to employees, stakeholders and invited media in a presentation shortly after sharing their very promising earnings from the previous calendar year. “We have to remain reasonable,” he stated. In a statement to Reuters representatives from LV gave further clarity on the expected increases. “The price adjustment takes into account changes in production costs, raw materials, transportation as well as inflation.”
While the decision to up the tags is sure to read as sticker shock to most consumers, luxury analysts applauded the decision. Analysts at Barclays were quoted by Women’s Wear Daily as saying “we view the price increase as a positive for LVMH”. The British banking firm doubled down on their stance. “Considering the pricing power of Louis Vuitton and the desirability of the brand, we view the price increase as a positive for LVMH.”
Aside from earnings and price hikes Bernard Arnault confirmed that the company is still in mourning the sudden passing of Virgil Abloh and did not discuss backfilling his Menswear Creative Director role. LV recently released a capsule collection in honor of his seventh collection.
Photo: Louis Vuitton
