France’s proposed corporate tax increase is set to have significant repercussions for the nation’s economy, especially for its most prominent luxury brands. The government is eyeing an €8 billion hike in corporate taxes to manage the country’s ballooning budget deficit. This plan would primarily target successful companies generating more than €1 billion in revenue within […]
China’s Booming Grey Markets Add Woes to Luxury Brands
The luxury market in China is facing a significant challenge as grey and second-hand markets continue to expand. With rising prices from high-end brands and a slowing economy, many consumers are turning to alternative ways to purchase luxury goods, a trend that is becoming increasingly pronounced and alarming for established luxury brands such as LVMH. […]
This Week: How Deep Will Luxury’s Downturn Go?
In the world of luxury goods, the recent woes of LVMH, Kering, Hermès, and Zegna raise pressing questions about the future direction of the sector. Following LVMH’s disappointing sales figures, analysts and investors alike are questioning just how far this downturn will extend. The situation becomes especially alarming given LVMH’s status as the leading indicator […]
For LVMH, It’s a Battle for Market Share Now. Let the Games Begin
In an unexpected twist for the luxury sector, LVMH, the world’s largest luxury goods conglomerate, revealed a 5 percent decline in third-quarter sales within its core fashion and leather goods division. This includes iconic brands such as Louis Vuitton, Dior, and rising stars like Loewe and Celine. This downturn arrives after a prolonged period of […]
Luxury Market in Flux: Can Fiscal Stimulus Resurrect Chinese Consumer Confidence?
Investors in the French luxury group LVMH are tuning in closely to the latest economic developments in China, particularly the country’s new fiscal stimulus measures. There’s a palpable hope that these efforts might rejuvenate a once-vibrant consumer base that has cooled significantly in recent months. As one of the largest shopping events—Singles Day—approaches, the stakes […]
This Week: Has Luxury Hit Bottom?
Once considered the epitome of success in the retail sector, luxury brands now face a tumultuous landscape, prompting questions about the future of the industry. Not long ago, luxury brands confidently announced impressive quarterly results characterized by soaring sales figures—often up by 10, 20, or even 30 percent—thanks to a surge in demand post-pandemic and […]
Arnault Poised to Buy Paris FC Football Club With Red Bull
In a substantial move that underscores the intersection of luxury and sports, Bernard Arnault’s family is on the verge of acquiring a majority stake in Paris FC, a second-tier football club in France, in a partnership with the Red Bull brand. This strategic investment reflects the Arnault family’s commitment to diversifying their portfolio and merging […]
LVMH and Formula 1 Announce 10-Year Partnership
In a significant move for both the luxury fashion and motorsport industries, LVMH and Formula 1 recently unveiled a groundbreaking partnership that will commence in 2025. This collaboration marks a strategic union that will align several prestigious LVMH brands—most notably Louis Vuitton, Moët Hennessy, and TAG Heuer—with the high-octane world of Formula 1 racing. This […]
Hedi Slimane Is Exiting LVMH’s Celine
The departure of Hedi Slimane from Celine marks a significant shift in the luxury fashion landscape, particularly within the LVMH conglomerate. After seven years at the helm, Slimane’s exit was confirmed recently, concluding months of complex contract negotiations with LVMH’s chairman, Bernard Arnault. This decision comes on the heels of Slimane’s impressive tenure, during which […]
LVMH Sells Off-White Brand to Bluestar Alliance
In a significant shift within the luxury fashion landscape, LVMH has sold Off-White LLC to Bluestar Alliance LLC, a New York-based brand management company. This deal, announced on September 30, 2024, marks a pivotal moment for the Off-White brand, which has experienced tumultuous changes since the passing of its founder, Virgil Abloh, in 2021. The […]