Louis Vuitton Increases Prices on Popular Neverfull GM Handbag Following Trump’s EU Tariffs
Luxury fashion powerhouse Louis Vuitton has implemented a price increase on one of its bestselling handbags in the United States market, following the recent introduction of 10 percent tariffs on European Union imports under the Trump administration.
The iconic Neverfull GM bag in the brand’s signature monogram-coated canvas now retails for $2,200 on Louis Vuitton’s official US website, marking a $100 increase from its previous price point just last week. This adjustment represents a 4.8 percent price hike on one of the brand’s most sought-after accessories.
According to Bernstein analyst Luca Solca in a Wednesday research note, Louis Vuitton has implemented an average price increase of 3.6 percent across its US handbag collection. Interestingly, Solca pointed out that numerous products within the luxury house’s portfolio remained untouched by price adjustments, potentially indicating domestic manufacturing origins. Louis Vuitton currently operates three manufacturing workshops within the United States.
When contacted regarding these pricing changes, representatives for both Louis Vuitton and parent company LVMH did not immediately respond to requests for comment.
The US market represents a significant portion of LVMH’s global business, accounting for 24 percent of the luxury conglomerate’s sales during the first quarter of the year.
This price adjustment follows warnings from various luxury groups, including LVMH Moët Hennessy Louis Vuitton SE, about potential price increases to counterbalance the impact of US tariffs implemented earlier this month. LVMH Chief Financial Officer Cecile Cabanis recently stated that while she believes the group’s prestigious brands benefit from pricing power in the marketplace, there won’t be a uniform approach to these adjustments. She emphasized that pricing strategies would vary depending on individual brands and product categories within the LVMH portfolio.
Although LVMH does not disclose individual brand performance in its financial reporting, Louis Vuitton stands as the conglomerate’s flagship label, estimated to represent approximately one-quarter of total revenue and more than half of LVMH’s overall profit, according to analyses by HSBC.
Louis Vuitton, globally recognized for its iconic monogrammed trunks and leather goods, generated an estimated €21.6 billion ($24.5 billion) in sales last year according to HSBC projections, securing its position as the world’s leading luxury fashion brand by revenue.
In a similar response to the tariff situation, Hermès International SCA announced last week that it will also implement price increases across its US offerings effective May 1st to offset the impact of these tariffs, though specific pricing details are still being finalized.
The luxury goods sector continues to navigate the challenging landscape of international trade policies, balancing brand positioning with economic realities in key markets like the United States.