Louis Vuitton parent company LVMH fined 8 million Euros in Hermes case
Shell be the No. 2 executive in a unit that accounts for half of LVMHs pretax earnings, evidence that shes being groomed for a top jobperhaps the top jobat the Paris-based luxury giant. While Vuitton is still the worlds most valuable luxury brand, its losing ground to competitors such as Gucci and Prada ( 1913 ) as demand wanes for the iconic LV monogrammed handbag. A report last month by consultancy Millward Brown Optimor estimated that Vuittons brand value declined 12 percent over the past year. LVMH in April reported its weakest fashion and leather goods revenues in more than three years as sales flattened in China. As consumers make room for those luxuries that make them feel better by trading down on other items, it is the middle-of-the-road brands, such as Vuitton, that have suffered, Millward Brown Optimor said. Delphine Arnaults task will be to give the brand a more exclusive aura, deemphasizing its ubiquitous monogrammed canvas bags and introducing costlier leather bags. In the short term, that could depress sales growth, as LVMH also has said it plans to open fewer Vuitton boutiques. Delphine is the eldest of Bernard Arnaults five children. For the past five years she has held the No.
Daughter’s Got a Brand New Bag, and It’s Louis Vuitton
After much name calling, accusation throwing and general slinging of verbal mud, French regulatory board AMF condemned LVMH for ‘failing to follow market rules’, when it discretely accumulated a significant stake in Hermes stocks. Citing the “seriousness of the successive breaches of public disclosure requirements, which consisted in concealing each stage of LVMH’s stake-building in Hermes,” as the fuel behind the hefty fine, the AMF appear to be in no doubt that there’s been foul play. LVMH however, continues to disagree. Brandin both the claim and punishment to be ‘unfounded’, the conglomerate has said it will appeal against the decision, despite further cases being already lodged against it by, yep you guessed it, Hermes. Though this chapter may be settled for now, expect more drama as the cases continue to pile up! Thoughts?