LVMHF today is trading at $389.96, it is trading lower with $3.64 mainly because right now at the height of Covi-19 crisis many fashion houses including
LVMH Moet Hennessy- Louis Vuitton, Societe Europeenne (LVMHF)
LVMHF today is trading at $389.96, it is trading lower with $3.64 mainly because right now at the height of Covi-19 crisis many fashion houses including LVMH’s Louis Vuitton and Christian Dior; Kering SA’s Gucci; Prada SpA; Burberry Group Plc; and Ralph Lauren Inc, are to repurposed some production facilities to make personal protective equipment for donation to medical workers on the front lines and this has affected their sales. If luxury goods companies were to make masks for profit, not only would they need to look stylish, but they would probably have to boast some health effectiveness, too. And they’d have to be expensive to fit with any luxury brand’s high-end prices. However, the danger is that luxury groups would be seen as profiteering from a health-care emergency. What’s more, according to consultants at McKinsey & Co., consumers shift to more subtle “silent luxury,” rather than in-your-face bling, after a large-scale crisis with a heavy emotional toll. This will be perceived as unethical or simply ugly consumerism and could turn off customers, especially younger shoppers who are particularly conscious of brands' social values. Nonetheless, stylish face coverings could provide a bit of a boost in a coronavirus-strewn landscape, where luxury goods sales are expected to drop as much as 35% this year, according to Bain & Co. estimates. To give some idea of the pent-up demand, fashion search platform Lyst said searches for masks are up 1,600% over the past month, compared with a year earlier.