×
76 964
Fashion Jobs
SACK OFF 5TH
Operation Associate
Permanent · WOODBRIDGE
UNDER ARMOUR
Stock Keyholder, PT
Permanent ·
UNDER ARMOUR
Stock Keyholder, FT
Permanent · ALTOONA
UNDER ARMOUR
Stock Keyholder, PT
Permanent · GURNEE
UNDER ARMOUR
Stock Keyholder, FT
Permanent · NASHVILLE
SALOMON
us Business Development Director, Run Specialty - Salomon North America
Permanent · OGDEN
BLOOMINGDALE'S
Senior Art Director, Photo
Permanent · NEW YORK
TUMI
Associate Manager PT 20-29
Permanent · MANCHESTER
ADIDAS
Operations Supervisor Weekend Shift (Fri - Sun 7:00 am - 7:30 pm)
Permanent · SPARTANBURG
SALLY BEAUTY CORPORATE
Hair Stylist/Salon Professional- Sally Beauty
Permanent · DENTON
SALLY BEAUTY CORPORATE
Hair Stylist/Salon Professional- Sally Beauty
Permanent · DENTON
ATHLETA
General Manager - Park West
Permanent · PEORIA
OLD NAVY
Assistant General Manager - Richmond s/c
Permanent · NEW YORK
DECKERS
Loss Prevention And Safety Supervisor
Permanent · MOORESVILLE
QURATE RETAIL GROUP
Senior Product Manager - Sune
Permanent · NEW YORK
MACY'S
Retail Fulfillment Associate, Polaris - Full Time
Permanent · Columbus
MACY'S
Retail Fulfillment Associate, Barton Creek Square Mall - Full Time
Permanent · Austin
MACY'S
Retail Fulfillment Associate, Willow Grove Park - Full Time
Permanent · Willow Grove
MACY'S
Retail Fulfillment Associate, Montclair Plaza - Full Time
Permanent · Montclair
MACY'S
Retail Fulfillment Associate, Salem Center - Full Time
Permanent · Salem
MACY'S
Retail Fulfillment Associate, Huntington - Full Time
Permanent · Barboursville
MACY'S
Asset Protection Detective, Domain - Full Time
Permanent · Austin
By
Reuters API
Published
Feb 16, 2022
Reading time
2 minutes
Download
Download the article
Print
Click here to print
Text size
aA+ aA-

Will Kering and Hermes follow Louis Vuitton's lead on prices?

By
Reuters API
Published
Feb 16, 2022

When Gucci-owner Kering and Hermes report earnings this week, investors will be looking for signs that the big luxury fashion groups are confident that wealthy shoppers are willing to pay higher price tags for designer accessories.


Reuters



Rival Louis Vuitton, the world's largest luxury label, said on Tuesday it would raise prices globally from Feb. 16 due to higher manufacturing and transport costs - one of the first major luxury brands to do so this year.

Pricing power could emerge as a key driver of revenue growth again in 2022 for the top tier of the fashion and leather goods industry, following a string of price hikes in 2021 and 2020.

Consumers came out of lockdowns eager to spend their cash on luxury fashion and accessories, after months of being stuck at home. Brands are taking advantage of that spending power to make their wares even more costly and exclusive.

Bloggers on China's social media platform Xiaohongshu are forecasting higher prices from Kering profit engine Gucci from as soon as Friday. Gucci's small Marmont shoulder bag, which currently costs 16,500 yuan ($2,602), is seen going up around 3%, while other Gucci accessories could climb 10-15%.

Users of the Xiaohongshu site, known in the industry as Little Red Book, often cite sales associates for the fashion labels and have a track record of correctly predicting price increases but do not always specify their sources.

Kering's Balenciaga already raised prices in early January in China, according to the Xiaohongshu site. The cost of the label's curvy Hourglass handbags in size small and extra-small, for instance, has risen by 3.5-4% to 17,500 yuan and 11,550 yuan respectively.

Kering declined to comment, noting it is in a closed period ahead of its annual earnings on Thursday.

Hermes told Reuters it would be likely to address the pricing issue when it reports earnings on Friday, denying analysts' reports that the company had already increased prices last month by 3% to 10%.

Chanel raised the prices of some of its most sought after handbags three times last year, with its small classic handbag now costing around $8,200, or 60% more than in 2019.

"This year is likely to bring a virtuous circle of pricing power and brand desirability," UBS said in a note to clients.

Kering is expected to report organic sales growth of 20% over the fourth quarter, HSBC has forecast, helped by marketing investments generating buzz around Gucci's 100th anniversary - last year.

Sales at Hermes are expected to rise 12% at constant foreign exchange rates over the period, HSBC said.
 

© Thomson Reuters 2023 All rights reserved.