Louis Vuitton raises price on popular US bag following new Trump tariffs

[PARIS] Louis Vuitton has increased the price of one of its most popular handbags in the US after the implementation of 10 per cent tariffs on goods coming from the European Union.

The Neverfull GM bag in monogram-coated canvas now costs US$2,200 on the company’s US website, US$100 more than last week, a 4.8 per cent price hike.

Luca Solca, an analyst at Bernstein, wrote in a note on Wednesday (Apr 23) that Louis Vuitton has raised its US handbag prices by 3.6 per cent. He said that many products did not see an increase, however, which could indicate they are manufactured in the US. Louis Vuitton has three workshops in the country.

Representatives for Louis Vuitton and LVMH did not immediately reply to requests for comment.

The US generated 24 per cent of LVMH sales in the first quarter.

Luxury groups including LVMH Moet Hennessy Louis Vuitton have warned that they will 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 will not be a one-size-fits all strategy. Price levels will depend on the brand and the category of products, she added.

While LVMH does not 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 euros (S$32 billion) in sales last year, according to HSBC, making it the world’s biggest luxury fashion label.

Hermes International last week announced that it will raise prices in the US as at May 1 to offset tariffs, with details on final pricing still being ironed out. BLOOMBERG