LVMH sees room to lift prices 2–3%, says deputy CEO
French luxury group LVMH has room to raise prices of high-end products by around 2–3% without likely affecting demand from luxury clients, but it would be difficult to lift prices of cognac or beauty products, company executives said on Wednesday.
"We can increase prices by 2% to 3% per year," deputy CEO Stéphane Bianchi told members of the French parliament in a hearing on Wednesday, when asked about his group's ability to offset potential tariffs.
Citing the example of high jewelry, Bianchi said buyers of the group's most expensive products would absorb such price hikes, but cautioned that "this does not mean the (price) elasticity is infinite."
U.S. President Donald Trump this week backed away from his threat to impose 50% tariffs on imports from the European Union next month, restoring a July 9 deadline to allow for talks between Washington and the 27-nation bloc to produce a deal.
Raising the prices of lower-priced beauty products and cognac would be more complicated, added finance chief Cécile Cabanis, saying 'the capacity to raise prices is not there.'
LVMH executives said they still plan to continue investing in China, although they had noticed that Chinese consumers have been traveling and spending less over the past three months.
Demand in the United States, however, showed the first signs of a rebound, but as long as trade tensions with the European Union over threatened tariffs are not being eased, the climate will remain difficult, said Bianchi.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
France 24
an hour ago
- France 24
Brazil sues China's BYD over 'slavery' conditions on build site
The case concerns 220 Chinese workers found last December in conditions "analogous to slavery" at a BYD plant under construction in Camacari, in the northeastern state of Bahia. Bahia's regional ministry for works (MPT) said in December it had found "degrading working conditions" at the site being built, expected to be BYD's largest electric car plant outside Asia. Workers slept without mattresses and, in one case, 31 people had to share a bathroom, it said. Laborers had "visible signs of skin damage" from working long hours under the sun. The MPT said it also suspected "forced labor," with illegal clauses in workers' contracts, passports confiscated and the employer withholding as much as 70 percent of their salary. Workers were monitored by armed guards. After the allegations were made public, BYD's Brazilian subsidiary said it had broken its contract with the Jinjiang contractor responsible for work on the site. Jinjiang denied the slavery allegation. The MPT is now seeking 257 million reais ($45.3 million) for "collective moral damages," as well as individual payments for each worker. The civil suit against BYD, Jinjiang and Tonghe Intelligent Equipment (now Tecmonta) was filed after the companies refused to sign a "conduct adjustment agreement" proposed by Brazilian authorities, the MPT said. On Thursday, BYD said in a statement it had collaborated with the MPT from the beginning, and "reaffirms its non-negotiable commitment to human and labor rights, guiding its activities by respecting Brazilian legislation and international labor protection standards." Chinese foreign ministry spokeswoman Mao Ning told reporters Beijing "places great importance on protecting and safeguarding workers' legitimate rights and interests," and requires Chinese companies to "operate in compliance with laws and regulations."
LeMonde
4 hours ago
- LeMonde
Romania's far right takes aim at France
Since the start of the campaign for the Romanian presidential election, which was eventually won on Sunday, May 18, by the pro-European candidate Nicusor Dan, a strong anti-French sentiment has been growing in this Eastern European country. The far right, and especially the defeated candidate, George Simion, adopted hateful rhetoric in stark contrast to the traditional alliance between Romania and France, two countries with deep cultural, linguistic, and historical ties. Although Simion had initially conceded defeat, on Tuesday, May 20, he abruptly changed course and filed complaints – so far all rejected – against alleged French interference. "Nicusor [Dan] is not the president of Romanians. Nicusor is a puppet of France," attacked the former ultra football supporter, calling on his supporters "to take to the barricades." While Simion also, without evidence, accused neighboring Moldova – a country led by a strongly pro-European government – of having spent "€100 million" to "buy votes" in favor of the winner, it was mainly the French intelligence services that he targeted, accusing them of having supposedly "manipulated social media and used algorithms to influence Romanian citizens." These were precisely the same accusations Romanian authorities had previously leveled at Moscow during the original election held in November 2024.
France 24
4 hours ago
- France 24
What comes next in Trump's legal battle over tariffs?
What is in the US Court of International Trade's original ruling -- which the Trump administration is appealing -- and what options does the administration have? Which tariffs were affected? The three-judge trade court ruled Wednesday that Trump overstepped his authority in imposing blanket tariffs by invoking emergency economic powers. The judgment -- although temporarily halted -- affected levies unveiled on April 2, which involve a 10-percent tariff on most trading partners and higher rates on dozens of economies including China and the European Union. These higher levels are currently suspended while negotiations take place. The ruling also applies to tariffs imposed on Canada, Mexico and China over their alleged roles in allowing an influx of drugs into the United States. But it left intact sector-specific levies like those on steel, aluminum and auto imports. Why a pause? The ruling by the little-known court, which has nationwide jurisdiction over tariff and trade disputes, initially gave the White House 10 days to complete the process of unwinding the levies. But the US Court of Appeals for the Federal Circuit on Thursday granted a temporary stay "until further notice" while the Trump administration's appeals process plays out. This means the tariffs can remain in effect for now, while a longer-term outcome is yet to be determined. National Economic Council director Kevin Hassett told Fox News the administration is "very pleased with the ruling," dubbing it a victory. What are Trump's alternatives? The appeals court could eventually uphold the trade court's original decision to block Trump's sweeping tariffs. The president, however, has other means to reinstate his tariff agenda, said Thibault Denamiel, a fellow at the Center for Strategic and International Studies. These include Section 122 of the Trade Act of 1974, "which is intended to deal with a balance of payments emergency but does not require a formal investigation," Denamiel told AFP. The authority restricts tariffs to 15 percent and they can only last 150 days. But it is among the policy levers that Trump could pull as he seeks a "bridge" towards more lasting actions, said KPMG chief economist Diane Swonk. Another option is Section 338 of the Trade Act of 1930, allowing the administration to impose tariffs of up to 50 percent on countries that discriminate against the United States, Denamiel said. Does this affect trade talks? The US trade court's ruling did not remove the threat of US tariffs for Europe or end the need for negotiations, said Andrew Kenningham, chief Europe economist at Capital Economics. This is because the threat of reciprocal tariffs remains if the White House wins its appeal, he said. Trump could also turn to sector-specific means as he did in his first term or seek congressional approval for tariffs, though this is less likely, Kenningham said. It is not clear if negotiations will lose steam, Swonk added, given that the administration wants to leverage the threat of tariffs "very aggressively." Even if the original ruling is eventually upheld, US officials could still buy time to exert pressure on other economies including the European Union and China. What about the broader economy? The court process "introduces greater ambiguity around the future direction of US trade policy," especially because the appeal is ongoing, said EY chief economist Gregory Daco. "This legal development amplifies longer-lasting uncertainty for businesses navigating cross-border supply chains," he added in a note. US stocks closed higher Thursday, but economic fallout has already occurred in recent months with Trump's see-sawing approach to unveiling tariffs and pausing them selectively. Financial markets have been roiled by policy shifts, and shipping halts due to high tariffs bring disruptions that cannot be cleared overnight, analysts said.
