19.05.2020 LVMHF Daily Analysis

19.05.2020 LVMHF Daily Analysis

LVMHF is trading at $384.00, it is trading higher with $26,80 mainly because top luxury brands from Chanel to Louis Vuitton have increased prices of some of their most coveted products as they seek to make up for sales lost during weeks of coronavirus lockdowns. High-end houses have all reported brisk business in South Korea and the key Chinese market, where shops began to reopen in March, partly offsetting a slump in Europe and the United States - where restrictions are only just starting to be lifted. Most Luxury Groups are moving quickly to protect margins, for instance, LVMH's star fashion label Louis Vuitton - which the company said last month was enjoying sales growth in excess of 50% in China in early April - has also been hiking prices of handbags in the United States and Europe.  With global travel not expected to return to normal levels for up to two years, Chinese consumers who used to make two-thirds of their luxury purchases abroad will largely be shopping at home, accelerating a trend that was already underway. That means that luxury brands are under pressure to further align prices in mainland China - which have traditionally been higher than in other parts of the world - to encourage Chinese consumers to buy in their own country.