LVMH - The Luxury Goods Conglomerate

[JohannesL]

Thanks for the WTO and NAFTA propagandized by neo-liberalism that also killed its workers in other sectors.

 

[yslforever]

Thanks for the WTO and NAFTA propagandized by neo-liberalism that also killed its workers in other sectors.

Because American CEOs were greedy and wanted manufacturing in Mexico, for a third of the US cost. And who pays political parties the best, companies.
But it's deeper than that, there is a strong tropism from US consumers towards European brands and "Made in Europe", especially in luxury fashion.
I think I said earlier that LV has problems with US consumers returning the goods when they are not sure they came from a French or Italian plants, though the plants are in Texas and California (but probably with migrant workers).

 

[JohannesL]

Because American CEOs were greedy and wanted manufacturing in Mexico, for a third of the US cost. And who pays political parties the best, companies.
But it's deeper than that, there is a strong tropism from US consumers towards European brands and "Made in Europe", especially in luxury fashion.
I think I said earlier that LV has problems with US consumers returning the goods when they are not sure they came from a French or Italian plants, though the plants are in Texas and California (but probably with migrant workers).

I think historically American high fashion in general just didn't the prestige like French/Italian brands and its high society ladies would always fly to Europe and prefered the latter. But the same can not be said about the mass market pre-outsourcing(late80s and 90s) brands, there were used to be decent deparment stores items for women and well-made suiting for men, both of which were made in US catering to its middle class. I think in the 80s middle-class Japanese were very fond of American fashion and they practically had buyers purchased from the US and doubled its price in shops. I also remember when I was in college in the late 2000s, one of the few brands that kept its Made in America trademark was Martin Freeman who ran his factories in Brooklyn compared with Brooks Brothers who only kept a small fraction of its factotries in US, which also had to do with the decreasing number of men wearing suits). To me, the long-gone Made in US always embodys the ideal of what a middle class can afford and enjoy in contrary with the gap of the high fashion landscape nowadays and the diminishing of middle class.

 

[JohannesL]

I think historically American high fashion in general just didn't the prestige like French/Italian brands and its high society ladies would always fly to Europe and prefered the latter. But the same can not be said about the mass market pre-outsourcing(late80s and 90s) brands, there were used to be decent deparment stores items for women and well-made suiting for men, both of which were made in US catering to its middle class. I think in the 80s middle-class Japanese were very fond of American fashion and they practically had buyers purchased from the US and doubled its price in shops. I also remember when I was in college in the late 2000s, one of the few brands that kept its Made in America trademark was Martin Freeman who ran his factories in Brooklyn compared with Brooks Brothers who only kept a small fraction of its factotries in US, which also had to do with the decreasing number of men wearing suits). To me, the long-gone Made in US always embodys the ideal of what a middle class can afford and enjoy in contrary with the gap of the high fashion landscape nowadays and the diminishing of middle class.

Oh, my bad, it was Martin Greenfield whose factory is still running today. I remember things wrong when combing it with Hickey Freeman which is also a historical suits manufacturer.

 

[mrrene]

LVMH is due to report earnings this coming Tuesday 28th January.

 

[yslforever]

LVMH is due to report earnings this coming Tuesday 28th January.

In French, but they are describing a "black year" for Tiffany and blaming Alexandre Arnault:

INFO BFM BUSINESS. "Ça va vraiment mal": année noire pour Tiffany, le joyau américain de LVMH

Selon nos informations, les résultats du joaillier américain, racheté à prix d’or il y a quatre ans, sont décevants. Sa relance prend du temps.

www.bfmtv.com

Also an intervention call from BA to another French billionaire, Rodolphe Saadé, who owns also a media company, because his media reported on losses at Tiffany and blamed it on Alexandre:

BFM : Saadé met en sourdine une info sur Tiffany après un coup de fil de Bernard Arnault - LA LETTRE

Une enquête sur les piètres résultats de Tiffany mettant en cause Alexandre Arnault a déclenché un discret appel de son père au patron du groupe RMC BFM, Rodolphe Saadé. L'article a été mis en

www.lalettre.fr

Both respectable financial sources.

 

[GRCF]

In French, but they are describing a "black year" for Tiffany and blaming Alexandre Arnault:

INFO BFM BUSINESS. "Ça va vraiment mal": année noire pour Tiffany, le joyau américain de LVMH

Selon nos informations, les résultats du joaillier américain, racheté à prix d’or il y a quatre ans, sont décevants. Sa relance prend du temps.

www.bfmtv.com

Also an intervention call from BA to another French billionaire, Rodolphe Saadé, who owns also a media company, because his media reported on losses at Tiffany and blamed it on Alexandre:

BFM : Saadé met en sourdine une info sur Tiffany après un coup de fil de Bernard Arnault - LA LETTRE

Une enquête sur les piètres résultats de Tiffany mettant en cause Alexandre Arnault a déclenché un discret appel de son père au patron du groupe RMC BFM, Rodolphe Saadé. L'article a été mis en

www.lalettre.fr

Both respectable financial sources.

Not his first time calling someone to complain about an article to have taken down. Though at least this one is still in the website. He's a very sensitive man.

 

[Lola701]

Im a it confused by how the Beyonce and Jay-Z 2021 campaign had an impact on sales in 2024 and 2023…

For me the underperformance of Tiffany is in the positioning.
LVMH is trying to position Tiffany as Cartier’s competitor when they have Bulgari for that.

The strength of Tiffany has always been in silver and in their lifestyle approach. That is almost a niche in the big luxury mainstream market (I don’t think Cristofle is having those kind of numbers).

They have been trying their hardest to establish Tiffany as the force of jewelry with launching more and more exclusive, expensive lines in order to attract a certain clientele when the icon of Tiffany is there. More Elsa Perretti!

 

[Nimsay]

Based on FW25. The Louis Vuitton Homme would beat up the Dior Homme for his Croc Saddle Bag.

There is a disconnect in how the Arnaults perceive the essence of Tiffany. The brand is very Montauk - U.E.S., Le Cirque for lunch in Oscar de la Renta. It is far removed from the international world of Louis Vuitton. Tiffany is like Ralph Lauren.

However, the recent release of those puffy heart pieces is a step in the right direction. It seems to better align with Tiffany's identity.

As for the lock bracelet I can't help but view it as a misstep. The notion of it being positioned as part of a stack feels far too calculated and lacks timeless appeal.

 

[SophiaVB]

The pricing is crazy. The Elsa Peretti pieces have gone up several hundred dollars over the last year for the basic silver bone cuffs.

 

[Frederic01]

When asked by an analyst about Dior’s performance, Arnault noted that among couture houses, Dior had the best performance of 2024. “We’re lucky to have the best designers in the group, and to keep them for a long time. It’s important, we have a relationship with them that goes far beyond a classic business relationship that one can see in some houses. Continuity is essential. Changes that are too rapid in these professions are difficult.” Pressed by reporters to comment on rumours about upcoming creative changes at Loewe and Dior, he said: “You’re talking about hypotheses, there’s been no announcement.”

VOGUE BUSINESS

 

[SophiaVB]

Phantom Bonuses, Staff Exodus: Inside the Troubled House of Tiffany

Tiffany & Co.‘s initiative to boost staff morale with the “Tiffany Joy” app backfired, evolving into a source of frustration as employees faced increasing pressure to engage, highlighting broader challenges in the company’s culture and sales strategy.

www.businessoffashion.com

Kilaniotis told the directors he didn’t want to hear excuses that the US luxury market was slowing when stocks of companies like Meta Inc. were soaring and billionaires were pouring money into the US elections, these people said.

He said that if the wealthy were donating to the US election, they could also afford to buy Tiffany jewelry, according to current and former staffers. The lack of interest from clients, Kilaniotis said, was proof the directors hadn’t worked hard enough to cultivate relationships with America’s richest shoppers.

 

[GRCF]

VOGUE BUSINESS

LVMH also said divesting from Stella McCartney was fake news and yet...

 

[GRCF]

LVMH : Dior dévisse bien plus que Louis Vuitton en 2024 - LA LETTRE

La griffe dirigée par Delphine Arnault a vu ses résultats décrocher de plus de 30 % l'an dernier et son chiffre d'affaires de près de 9 %, quand celui de Louis Vuitton est resté stable. Jonathan

www.lalettre.fr

They mention how Dior's performance fell more than 30% last year and operational profits falling more than 800 million euros. They attribute this partly to the increase in product prices, which almost doubled. But they also touch on the various critiques of MGC's more sober vision of the maison, and JWA replacing her and Kim.

Apparently there is also criticisms of Delphine's management style internally and within her teams, her tendency to micromanage and to hire "yes" men instead of people who will help invigorate the brand, and her lack of interest in marketing/communications for the maison. Which is surprising because I assumed marketing was how she got her start in Dior. She had tense relations with Delapalme, who has now moved to Moet Hennessy, and was replaced by Benedetta Petruzzo.

I think Dior is a victim of "if it ain't broken why fix it" mentality, the entirety of LVMH is. As a whole, it is a stagnant group, they are not innovating, they are not exciting. They are stale and just cruising to profits. It's easy for a group like LVMH because their major brands will always be desirable by those who want to show off they have money or pretend that they have money. The brands are a status symbol and people will always seek status, so I think this mentality alone enables status quo thinking in the group and keeps them from hiring anyone is either not in the Arnault's social circle or looking to bring fresh ideas and actual value (outside of the quality one associates with Made in France) to these brands.

 

[proseccotabis]

She had tense relations with Delapalme, who has now moved to Moet Hennessy, and was replaced by Benedetta Petruzzo

i wonder how Petruzzo is doing at Dior now?

not in the Arnault's social circle

LVMH is heavy on nepotism....

 

[GRCF]

i wonder how Petruzzo is doing at Dior now?

From what I understood in the article I see her performance the same as Delphine's under Sidney. It seems like she is more of an analogous personality to Delphine, rather than a complementary contributor that can maybe push some boundaries. So, I'm guessing she's doing well lol

LVMH is heavy on nepotism....

Very heavy. Which is fine if you are hiring your friends or children of your friends for insignificant roles, but at a higher level you want collaborators. Which they do have, but these people have been there for far too long already.

 

[proseccotabis]

From what I understood in the article I see her performance the same as Delphine's under Sidney. It seems like she is more of an analogous personality to Delphine, rather than a complementary contributor that can maybe push some boundaries. So, I'm guessing she's doing well lol

Very heavy. Which is fine if you are hiring your friends or children of your friends for insignificant roles, but at a higher level you want collaborators. Which they do have, but these people have been there for far too long already.

Honestly shocked because some departments just have full aristocratic families in there lmao

 

[Nimsay]

Kilaniotis has it absolutely right. I was telling my friend last year LV has bad Directors because the service is really bad. I was talking about a Louis Vuitton boutique in particular. Though I’ve noticed several LVMH stores (Givenchy, Fendi, LV, Tiffany) here failing in basic areas like follow-up and product knowledge. Tiffany stood out for the casual unprofessionalism displayed by their team. I worked for Tiffany a long time ago and back then working sales there was like working with cream of the crop.

I recently visited the newly open Dolce & Gabbana boutique in Palm Beach, and the experience was night and day. They offered me clothes on approval and invited me to a party. Compare that with LV where clients who’ve spent tens of thousands on purchases don’t even get a fraction of the same treatment. One acquaintance, who spent over $50,000 in a year at an LV store here, told me she didn’t even get an invitation to a holiday event at a golf community she is a resident of. That's a huge oversight.

The reality is, cultivating and maintaining a client base is everything in life.

 

[yslforever]

Honestly shocked because some departments just have full aristocratic families in there lmao

So just like Hermès then
But tbh the Arnaults are sometimes looked down by both the aristocracy and old money, in a funny mix of envy and condescension (is that a world in English ?), he is not liked nor accepted by the old grand society.

So, in the classic way of social climbers, BA is buying a lot of historical property this last months;
- the Hotel de Soyécourt, rue de l'U: the Pozzo di Borgo family divided the place in several apartments and Karl used to rent the ground floor with garden for decades. I think Marni then Valentino had shows in this apt last year. The Pozzo di Borgo sold to Gabon 15 years ago and now Gabon is forced to resale it. LVMH is buying it from the Gabon state for €200 m approximately.
- Hotel de la Salle, 21 rue de l'U, for Dior - a surprise - , but Dior has never succeeded rive gauche, so I suspect I will be the creative studio.
- BA has already a mansion rue Barbet-de-Jouy, bought from Bethy Lagardère, but he is buying feu Emanuel Ungaro's one, just next to him, and on the other side but on the same sidewalk, there is the residency of the Archibishop of Paris. And he just bought it for a hefty price, in a move that surprised many well-connected catholics (think traditional princesses and dukes), which are now saying his donation for Notre-Dame was with strings attached. But that's the usual parisian salon perfidy.

And you know his son-in-law bought Givenchy's apartment in 2019, just in front of YSL HQ, so right now him and DA are spending another 100 m€ to buy the remaining apts and get the whole mansion.

So this family/business just spend 400 to 500 m€ for prestigious adresses in the last 3 months, and hearing him complaining about French taxation during the last results call was kind of ironic.

But he is very serious with LVMH expanding their Rochambeau Ranch in Texas, LV already has 2 outposts in California and 1 in Texas, called Rochambeau Ranch. He wants a 2nd LV manufacturing plant there, another one for all the LVMH brands and a big campus to train workers. And a bigger mansion too on the same plot.

The blueprints are approved but not the timing of the announcement, because BA had a spat with Macron - who he holds responsible for the current instability (and the new tax) - and turned to DJT and Elon Musk last fall, and Elon convinced him Texas is better than California. But considering how DT and EM are toxic right now in the French public opinion, and the possibility of tariffs on his own products, BA/LVMH is dreading that this announcement could be seen as an endorsement of DJT and/or EM.

I wish I had more real fashion gossips, but people who work for him (and still do not like him), are only giving me corporate/family office gossips. He is surprisingly surrounded by a lot of loose lips, who leak way too much.

 

[yslforever]

Kilaniotis has it absolutely right. I was telling my friend last year LV has bad Directors because the service is really bad. I was talking about a Louis Vuitton boutique in particular. Though I’ve noticed several LVMH stores (Givenchy, Fendi, LV, Tiffany) here failing in basic areas like follow-up and product knowledge. Tiffany stood out for the casual unprofessionalism displayed by their team. I worked for Tiffany a long time ago and back then working sales there was like working with cream of the crop.

I recently visited the newly open Dolce & Gabbana boutique in Palm Beach, and the experience was night and day. They offered me clothes on approval and invited me to a party. Compare that with LV where clients who’ve spent tens of thousands on purchases don’t even get a fraction of the same treatment. One acquaintance, who spent over $50,000 in a year at an LV store here, told me she didn’t even get an invitation to a holiday event at a golf community she is a resident of. That's a huge oversight.

The reality is, cultivating and maintaining a client base is everything in life.

Kilaniotis is right. Customers service at Tiffany is abysmal, I went a month ago for Xmas, I left 10 minutes in.
And for LV, they really fcked their Murakami drops, clients with $50,000 a year could not have access to anything while scalpers left with dozens of shopping bags. And they are having too many quality issues and returns.