Close Menu
Global News HQ
    What's Hot

    17 Best Cape Cod Hotels, From Historic Properties to Beachfront Getaways

    June 1, 2025

    Superager Secrets: Keep Your Mind Sharp Past Age 80

    June 1, 2025

    France charges 25 over crypto kidnapping spree in Paris

    June 1, 2025
    Recent Posts
    • 17 Best Cape Cod Hotels, From Historic Properties to Beachfront Getaways
    • Superager Secrets: Keep Your Mind Sharp Past Age 80
    • France charges 25 over crypto kidnapping spree in Paris
    • Wait, Do You Always Have to Wash New Dishes Before Using Them? We Asked Cleaning Pros
    • SCHB Poses An Appeal For Passive Investors (NYSEARCA:SCHB)
    Facebook X (Twitter) Instagram YouTube TikTok
    Trending
    • 17 Best Cape Cod Hotels, From Historic Properties to Beachfront Getaways
    • Superager Secrets: Keep Your Mind Sharp Past Age 80
    • France charges 25 over crypto kidnapping spree in Paris
    • Wait, Do You Always Have to Wash New Dishes Before Using Them? We Asked Cleaning Pros
    • SCHB Poses An Appeal For Passive Investors (NYSEARCA:SCHB)
    • Netflix Give Us 3 'Stranger Things' Season 5 Release Dates
    • How to Start a Hat Business: Your Guide to Creative Entrepreneurship and Market Success
    • Down 16%, Should You Buy the Dip on Alphabet? | The Motley Fool
    Global News HQ
    • Technology & Gadgets
    • Travel & Tourism (Luxury)
    • Health & Wellness (Specialized)
    • Home Improvement & Remodeling
    • Luxury Goods & Services
    • Home
    • Finance & Investment
    • Insurance
    • Legal
    • Real Estate
    • More
      • Cryptocurrency & Blockchain
      • E-commerce & Retail
      • Business & Entrepreneurship
      • Automotive (Car Deals & Maintenance)
    Global News HQ
    Home - Luxury Goods & Services - This Week: What’s LVMH’s Take on Tariffs?
    Luxury Goods & Services

    This Week: What’s LVMH’s Take on Tariffs?

    Facebook Twitter Pinterest LinkedIn Tumblr WhatsApp VKontakte Email
    This Week: What’s LVMH’s Take on Tariffs?
    Share
    Facebook Twitter LinkedIn Pinterest Email



    What’s Happening: LVMH (Tuesday), Brunello Cucinelli (Wednesday), Moncler (Wednesday) and Hermès (Thursday) will report first-quarter results. They are among the first big fashion companies to do so since US President Donald Trump announced — then partially reversed — the highest tariffs in a century.

    A Partial Sigh of Relief: Most luxury stocks joined the market rally after Trump postponed tariffs on individual countries (other than China, more on that in a bit). But with a few exceptions, they regained only a fraction of their losses from the previous week.

    Not Just Tariffs: That’s partly because the luxury sector was preparing for a bumpy 2025 even before Trump’s April 2 Rose Garden address. The slowing US economy, a sluggish recovery in China and consumer fatigue with high prices and a perception of lacklustre design were all seen weighing on sales.

    But Really, It’s the Tariffs: Even with “reciprocal” tariffs postponed, the US will still slap a 10 percent tax on imports from all countries, and a whopping 145 percent duty in Chinese goods.

    There is a world in which a US-China trade war could benefit European luxury brands, if it prompts the EU and China to forge closer economies ties. The Chinese government could target American labels with investigations, and Chinese consumers may boycott American products. But the impact of tit-for-tat tariffs won’t be contained to the US and China. The uncertainty of the last two weeks, and the promise of more upheaval to come, is weighing heavily on consumer confidence and contributing to recession fears in the US. In China, there’s potential for trade-related turbulence to snuff out a nascent recovery in consumer demand.

    What Earnings Can Tell Us: As the biggest and most diversified luxury player, LVMH will have the most comprehensive view of the situation.

    How new chief financial officer Cécile Cabanis describes the landscape in China, and the economic outlook generally, could calm the luxury sector or send fresh shockwaves through it. Also worth keeping an eye on is LVMH’s travel retail business; its DFS duty-free chain could benefit from Americans going abroad for tariff-free purchases, or be hurt by falling travel volumes as the economic outlook darkens.

    Hermes and Brunello Cucinelli, meanwhile, will stress test the conventional wisdom that even a trade war won’t keep ultra-wealthy shoppers from their Birkins and cashmere.

    What Earnings Can’t Tell Us: The biggest luxury companies – even the ones whose executives attended Trump’s inauguration in January – are just spectators along with the rest of us. And while confirming Jonathan Anderson’s reported arrival at Dior or naming a new Fendi designer would be a nice diversion, earnings calls are rarely the setting for such announcements.

    At Least Someone’s Happy: The one clear winner from the chaos of the last two weeks is Prada, which was able to negotiate a last-minute discount on Versace, which it agreed to buy from Capri Holdings on Thursday for €1.25 billion ($1.38 billion). That said, Versace’s sales have been in free fall, and it will be a major undertaking to right the ship in such a tough market, even for red hot Prada. It’s a reality Prada Group CEO Andra Guerra acknowledged when he called Versace’s turnaround a “very long-term” effort.

    The Week Ahead wants to hear from you! Send tips, suggestions, complaints and compliments to brian.baskin@businessoffashion.com.



    Source link

    conglomerates earnings
    Share. Facebook Twitter Pinterest LinkedIn Tumblr WhatsApp Email
    Previous Article7 Weed Killers for Gravel That Won’t Hurt People, Pets, or the Planet
    Next Article The AI Doctor Coming to Read Your Test Results

    Related Posts

    Norma Kamali Resort 2026 Collection

    June 1, 2025

    Stine Goya Resort 2026 Collection

    May 31, 2025

    Sara Gilbert Puts Her Modern L.A. Farmhouse Back on the Market for $10 Million

    May 31, 2025

    H. Moser & Cie. Teams Up With Alpine Motorsports on New Race-Inspired Streamliner Watches

    May 31, 2025
    Leave A Reply Cancel Reply

    ads
    Don't Miss
    Travel & Tourism (Luxury)
    7 Mins Read

    17 Best Cape Cod Hotels, From Historic Properties to Beachfront Getaways

    Whether it’s the first time or the thousandth time, something happens when you drive over…

    Superager Secrets: Keep Your Mind Sharp Past Age 80

    June 1, 2025

    France charges 25 over crypto kidnapping spree in Paris

    June 1, 2025

    Wait, Do You Always Have to Wash New Dishes Before Using Them? We Asked Cleaning Pros

    June 1, 2025
    Top
    Travel & Tourism (Luxury)
    7 Mins Read

    17 Best Cape Cod Hotels, From Historic Properties to Beachfront Getaways

    Whether it’s the first time or the thousandth time, something happens when you drive over…

    Superager Secrets: Keep Your Mind Sharp Past Age 80

    June 1, 2025

    France charges 25 over crypto kidnapping spree in Paris

    June 1, 2025
    Our Picks
    Travel & Tourism (Luxury)
    7 Mins Read

    17 Best Cape Cod Hotels, From Historic Properties to Beachfront Getaways

    Whether it’s the first time or the thousandth time, something happens when you drive over…

    Finance & Investment
    4 Mins Read

    Superager Secrets: Keep Your Mind Sharp Past Age 80

    Superagers seem to have cracked the code that enables them to maintain the brain health…

    Pages
    • About Us
    • Contact Us
    • Disclaimer
    • Homepage
    • Privacy Policy
    Facebook X (Twitter) Instagram YouTube TikTok
    • Home
    © 2025 Global News HQ .

    Type above and press Enter to search. Press Esc to cancel.

    Go to mobile version