While Louis Vuitton customers bemoan yesterday’s price increases, another group is applauding. Who could that be? Luxury stock analysts. According to WWD, this is Barclays response to the hikes: “Considering the pricing power of Louis Vuitton and the desirability of the brand, we view the price increase as a positive for LVMH.”
Of course, higher sale prices mean higher revenues. But the discussion is actually more than that. It’s about how the luxury market depends upon Louis Vuitton and other top luxury brands having pricing power – and that customers are able and willing to pay up.
With this in mind . . . it will be interesting to see Hermès’ expected announcement of its own pricing strategy. Hermès recently denied (as reported by Reuters) that hikes already have been implemented. Stay tuned . . .
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