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Louis Vuitton has increased the price of one of its most popular handbags in the US after the implementation of 10 percent 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 percent price hike.
Luca Solca, an analyst at Bernstein, wrote in a note Wednesday that Louis Vuitton has raised its US handbag prices by 3.6 percent. He said that many products didn’t see an increase, however, which could indicate they’re manufactured in the US. Louis Vuitton has three workshops in the country.
Representatives for Louis Vuitton and LVMH didn’t immediately reply to requests for comment.
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The US generated 24 percent of LVMH sales in the first quarter.
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. Chief financial officer Cecile Cabanis said last week that she believes the group’s brands benefit from pricing power, but there won’t be a one-size-fits all strategy. Price levels will depend on the brand and the category of products, she added.
While LVMH doesn’t 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 ($24.5 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.
By Angelina Rascouet
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