For all of you who think that fashion is all about style and look, get your mind right! The main part of the fashion world no matter what he designers say is the business of fashion. Or in plain terms the money, so with that said alot of you have been spending strong in the ressession. Not sure what I'm getting at check this out: While 2008 has been a less than ideal year for the retail sector, Louis Vuitton Moet Hennesey (LVMH) has reported an increase in sales this quarter. The world’s most well-known luxury brand garnered a 4.2% increase to 23.9 million billion in 2008. That’s a lot of money my friends. LVMH did not provide numbers for their 4th Quarter profits but LVMH CEO Bernard Arnault does not seem to be sad about those results - whatever they may be.
“In January, we have seen growth, but I can’t give details,” Arnault said. “But it was not a bad month. Far from it.”
Arnault believes the increase in profits was due partially to strong brands, a diversified market share and a refusal to cut prices. While most brands and stores have been slashing prices - I’m talking about YOU Saks Fifth Avenue and Barneys - Louis Vuitton has held strong to regular seasonal prices.
"We are the one brand in the world that never gives discounts,” he said referring to the Louis Vuitton label.
In news that should make several magazines and other publications happy, LVMH has assured parties of interest that they will not be decreased their ad sales budget.
Louis Vuitton’s strongest area was fashion and leather goods, which saw 10.0% revenue growth before currency fluctuations in 2008, with a 6.8% reported final increase, to $6.0 billion, in 2008. While the Louis Vuitton company itself (not the stock - which owns other companies - ie.e Sephora, Moet Hennesy) saw considerable growth in the 4th quarter and all of 2008. It should be noted that during this time of economic uncertainty - LVMH will open up to 30 new Vuitton stores this year. This should tell you how strong LVMH’s performance was last quarter.
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