sold out leather bags suggest louis vuitton turnaround pays off
The store manager said that Louis Vuitton\'s expensive new Capucine leather handbags are sold like hot cakes in the European fashion capital, suggesting that the world\'s largest luxury brand may regain some
The news means Louis Vuitton is trying to strengthen the supply of its expensive leather bags and reposition itself as a more upscale and exclusive product --
Gucci also recently.
Start to produce positive results.
An informal Reuters survey of Louis Vuitton stores in Milan, Paris and London showed a shortage of 3,500 euros ($4,600)
The Capucine bag has had a long waiting list since its launch in June.
There is only one sample bag with the \"No Sale\" label printed on New Bond Street in London, and 40 people have already booked one, but the assistant said the bags may only be available in late September as early as October.
Full Capucine handbag
Rival Hermes also uses this material, and the price of grain Taurillon calf leather is several times that of Louis Vuitton canvas 600 eurosLV-
The name and profitability of this brand are built with embossed bags.
Arnaud, the owner of the parent company of LVMH Group, said that Louis Vuitton\'s plan to delete its portfolio of canvas bags in January, accounting for 90% of the gross profit margin generated by the business of 2 out of 3.
Analysts expect gross margins for bags such as Capucine to drop slightly.
In the summer, the clerk said, they delivered only a small portion of the Capucine bag every other week, suggesting that Louis Vuitton might have deliberately caused a shortage to cause a sensation in the product --
Draw a page from hemes\'s book.
LVMH and Louis Vuitton declined to comment.
Hermes is known for its shortage and waiting list in the luxury sector, especially its popular 7,000 to 30,000 euro Birkin and Kelly packs, which help to strengthen the brand\'s appeal.
\"I think this is a very positive sign that the Capucine package is sold out,\" said Luca Solka, analyst at Exane BNP Paribas . \".
\"Louis Vuitton has to work on its exclusive perception and create products to meet everyone\'s needs and lack of quantity, which is undoubtedly helpful.
\"Since the beginning of this year, LVMH\'s share price has been poor, partly because consumers have lost interest in French brands, which some think is too common. Since Jan.
1. LVMH shares rose only 1.
4%, while Cartier and Lancel owners Richemont\'s shares rose 28%, Gucci\'s parent company Kering\'s shares rose 23%, while Burberry\'s shares rose 31%.
Louis Vuitton has generated more than half of LVMH\'s operating profit, and its sales growth slowed to 5-
6% after more than 10% growth in decades, in part because of the active opening campaign.
Analysts estimate that Louis Vuitton\'s annual sales are about 7 billion euros, double that of rival Gucci. It has led to concerns that Louis Vuitton is so large that it exists globally that it has little room to expand.