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Fashion United
24-04-2025
- Business
- Fashion United
Louis Vuitton raises U.S. handbag prices amid tariff concerns
Louis Vuitton has quietly raised the prices of several handbags in the United States— a move analysts interpret as a preemptive response to the threat of U.S. tariffs on European imports. The adjustment comes on the heels of Hermès' announcement earlier this month that it will implement a 10 per cent price increase. According to a recent price comparison on the French luxury house's U.S. website, some handbags have risen by as much as 4.8 per cent, with others seeing increases in the range of 3.6 per cent. One of the most noticeable hikes was seen in the Neverfull GM in monogram-coated canvas, now retailing for 2,200 dollars, up 100 dollars from the previous week, reported Business Insider. In a note to investors on Wednesday, Luca Solca, luxury sector analyst at Bernstein, interpreted the move as a calculated hedge against the uncertain trade environment. 'A price increase of +3.6 percent seems more than enough to cover even the worst case scenario of 20 percent tariffs on EU exports to the US,' Solca noted, referring to growing concerns that transatlantic trade tensions could escalate further. The United States represents a vital revenue stream for LVMH, the parent company of Louis Vuitton, contributing 24 percent of group turnover in the most recent quarter. The U.S. market's importance underscores the strategic rationale behind price adjustments that seek to preserve margins in the event of trade disruptions. Interestingly, not all Louis Vuitton products were affected by the price increases. Industry observers suggest that bags and accessories produced at LVMH's three U.S.-based workshops and manufacturing facilities may have been spared due to their domestic origin, making them less vulnerable to import duties. This selective pricing approach also reflects a broader trend in luxury: brands are increasingly localising production to mitigate geopolitical risk and streamline logistics, particularly in key growth markets like the U.S. While Louis Vuitton has not made a formal announcement regarding the price changes, the timing and selectivity of the increases are unlikely to be coincidental. As trade relations between the U.S. and the EU continue to evolve, luxury houses such as Louis Vuitton are already adjusting their strategies to protect profitability without sacrificing demand. Whether American consumers—already accustomed to annual price increases from the French luxury brand—will react differently to this latest adjustment remains to be seen. But with handbags continuing to serve as core entry points into the luxury market Louis Vuitton's pricing strategy is likely to remain under close scrutiny.
Business Times
23-04-2025
- Business
- Business Times
Louis Vuitton raises price on popular US bag following new Trump tariffs
[PARIS] Louis Vuitton has increased the price of one of its most popular handbags in the US after the implementation of 10 per cent tariffs on goods coming from the European Union. The Neverfull GM bag in monogram-coated canvas now costs US$2,200 on the company's US website, US$100 more than last week, a 4.8 per cent price hike. Luca Solca, an analyst at Bernstein, wrote in a note on Wednesday (Apr 23) that Louis Vuitton has raised its US handbag prices by 3.6 per cent. He said that many products did not see an increase, however, which could indicate they are manufactured in the US. Louis Vuitton has three workshops in the country. Representatives for Louis Vuitton and LVMH did not immediately reply to requests for comment. The US generated 24 per cent of LVMH sales in the first quarter. Luxury groups including LVMH Moet Hennessy Louis Vuitton have warned that they will raise prices to offset the US tariffs imposed earlier this month. Chief financial officer Cecile Cabanis said last week that she believes the group's brands benefit from pricing power, but there will not be a one-size-fits all strategy. Price levels will depend on the brand and the category of products, she added. While LVMH does not break out financial performance by brand, Louis Vuitton is its biggest label, representing about a quarter of total revenue and more than half of the conglomerate's profit, according to estimates by HSBC. Louis Vuitton, known for its monogrammed trunks, likely generated 21.6 billion euros (S$32 billion) in sales last year, according to HSBC, making it the world's biggest luxury fashion label. Hermes International last week announced that it will raise prices in the US as at May 1 to offset tariffs, with details on final pricing still being ironed out. BLOOMBERG
Bloomberg
23-04-2025
- Business
- Bloomberg
Louis Vuitton Raises Price on Popular US Bag Following New Trump Tariffs
By Updated on Save Louis Vuitton has increased the price of one of its most popular handbags in the US after the implementation of 10% tariffs on goods coming from the European Union. The Neverfull GM bag in monogram-coated canvas now costs $2,200 on the company's US website, $100 more than last week, a 4.8% price hike.
Fashion Network
23-04-2025
- Business
- Fashion Network
Louis Vuitton raises price on popular US bag following new Trump tariffs
has increased the price of one of its most popular handbags in the US following the implementation of 10% tariffs on goods coming from the European Union. The Neverfull GM bag in monogram-coated canvas now costs $2,200 on the company's US website, $100 more than last week, a 4.8% price hike. Representatives for Louis Vuitton and LVMH didn't immediately reply to requests for comment. Luxury groups including LVMH Moët Hennessy Louis Vuitton SE have warned that they'll raise prices to offset the US tariffs imposed earlier this month. The group's Chief Financial Officer Cecile Cabanis said last week she believes its brands benefit from pricing power. While LVMH doesn't provide financial performance by brand, Louis Vuitton is its biggest label, representing about a quarter of total revenue but more than half of the conglomerate's profit, according to estimates by HSBC. Louis Vuitton, known for its monogrammed trunks, likely generated €21.6 billion ($24.6 billion) in sales last year, according to HSBC, making it the world's biggest luxury fashion label. Hermès International SCA last week announced that it will raise prices in the US as of May 1 to offset tariffs, with details on final pricing still being ironed out.
