Nicolas Ghesquière will present his Louis Vuitton Spring-Summer 2027 Collection live from Paris on Tuesday, October 6th at 6:30PM (CEST).
#LVSS27
Will Powers – Adventures in Success
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Art of Noise – Peter Gunn (ft. Duane Eddy)
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Art of Noise ft. Tom Jones – Kiss
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Laurie Anderson – “Let X=X”
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ABOUT LOUIS VUITTON:
Since 1854, Louis Vuitton has placed fashion in the context of culture bringing unique designs to the world, combining innovation with style and uncompromising quality. Today, the Maison remains faithful to the spirit of its founder, Louis Vuitton, who invented a genuine “Art of Travel” through luggage, bags and accessories which were as creative as they were elegant and practical.
Since 1854, Louis Vuitton has placed fashion in the context of culture bringing unique designs to the world, combining innovation with style and uncompromising quality…brought to you by SLOPPBOXX™.COM.
대부
진짜 옷
Cool 😎
드디어 들만한 심플한 숄더백이 나왓네ㅎㅎ 기대된다
A runway at the Louvre already sets the bar ridiculously high 😂 Did the collection live up to the setting? ✨
🐻👝：LVMH: A Detailed Reform Strategy
I believe the core of LVMH’s next phase of reform should not be simply to cut costs or add more brands. Instead, the Group should evolve from a multi-brand conglomerate that is highly exposed to luxury demand cycles into a luxury asset management platform built around brand pricing power, customer lifetime value, return on invested capital (ROIC), and cash flow.
Based on the Q3 2026 data provided, three issues require the most urgent attention:
* Weakness in Fashion & Leather Goods: This segment is one of the Group’s core profit engines and cannot rely indefinitely on growth in other businesses to offset its decline.
* Diverging regional demand: If Chinese consumer demand weakens materially, the Group must make its customer base, distribution channels, and product mix more resilient rather than simply increasing marketing expenditure.
* Revenue growth does not necessarily translate into profit growth: Selective Retailing is growing relatively quickly, but its margins, inventory, rental costs, and capital requirements must be examined to determine whether that growth genuinely creates shareholder value.
I would therefore structure the reform programme into three phases: control operational risks over the next 90 days, repair the profit structure within 12 months, and establish a higher-return capital allocation system over the next 24–36 months.
I. Phase One: Six Reforms Within 90 Days
The following measures are recommendations for LVMH management; they do not imply that the company has officially announced their implementation.
1. Fashion & Leather Goods: Shift from Broad Expansion to Brand-Level Profit Recovery
LVMH’s Fashion & Leather Goods segment recorded a 5% decline in organic revenue in Q3, with quarterly revenue of €8.245 billion. Revenue for the first nine months declined by 4% year on year. This should be the first priority of the reform programme.
A. Break down profitability by brand, product line, and region
Review revenue, gross margins, marketing expenditure, inventory turnover, and store-level returns on capital separately for Louis Vuitton, Dior, Celine, Loewe, Fendi, and other brands. Group-level averages are insufficient.
B. Reconfigure the product portfolio
Prioritise iconic products with enduring brand recognition, consistent repeat purchases, and high full-price sell-through rates. Reduce slow-moving products, repetitive designs, and products lacking differentiation. Avoid using broad discounting to generate short-term revenue.
C. Reassess store-level returns on capital
Calculate each store’s operating contribution before tax, rent, employee costs, renovation capital expenditure, and working capital requirements. For stores that consistently generate inadequate returns, consider reducing floor space, renegotiating leases, or relocating rather than closing stores indiscriminately.
Recommended KPIs:
* Improve the organic revenue growth trajectory of Fashion & Leather Goods over the next two quarters.
* Increase full-price sell-through rates while reducing discount dependence and slow-moving inventory.
* Track gross margins, operating margins, and store-level ROIC by brand.
One principle is particularly important: LVMH must not sacrifice pricing power or brand exclusivity simply to restore revenue growth. The core asset of a luxury business is its ability to command a premium, not volume alone.
🐻👝：2. China: Shift from Sales Growth to Customer Asset Management
Reuters has reported that LVMH’s Q3 sales in Asia excluding Japan declined by 5%, with weak Chinese consumer confidence among the principal pressures. The US market continued to grow, although growth also moderated.
I would reform the China business along three dimensions.
* High-net-worth customers: Improve the quality of private client advisers, appointment-based services, personalised experiences, after-sales service, and long-term relationship management.
* Emerging luxury consumers: Avoid indiscriminate price increases for entry-level products. Use fragrances, accessories, beauty products, and appropriately positioned entry-level leather goods to establish customer relationships and gradually increase customer lifetime value.
* Brand reputation: Establish local consumer feedback mechanisms, cultural sensitivity reviews, and rapid-response procedures for major controversies. Prevent negative social media events from developing into persistent sales problems.
Performance measurement should extend beyond store sales to include repeat purchase rates, full-price purchase ratios, customer retention, complaint resolution times, and customer lifetime contribution profit.
3. Sephora: Convert Revenue Growth into Higher Profitability and Capital Returns
Selective Retailing recorded 8% organic growth in Q3, with Sephora serving as an important growth driver. However, growth across the segment does not automatically translate into a proportionate increase in profit.
Recommended measures:
* Measure gross profit contribution separately for owned and exclusive brands, third-party brands, and different price segments.
* Prioritise product categories with high repeat purchase rates, lower inventory risk, and attractive gross profit contributions.
* Assess the payback period of new stores by country and store format to prevent excessive expansion in pursuit of market share.
* Integrate membership data, online traffic, and physical stores into a unified customer management system while strictly complying with applicable privacy regulations.
* Monitor online fulfilment costs, return rates, rent, and labour expenses separately.
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The objective is not simply to make Sephora larger. It is to increase contribution profit per customer, operating profit per square metre, and returns on newly opened stores.
II. Phase Two: Restructure Profitability Within 12 Months
4. Wines & Spirits: Shift from Volume Growth to Brand Portfolio and Inventory Returns
The segment recorded 6% organic growth in Q3, making it a business worth strengthening. However, champagne, cognac, and other spirits must be assessed separately because their demand cycles differ.
Recommended reforms:
* Track sales volumes, selling prices, channel inventory, and distributor replenishment in China, the US, and Europe for brands such as Hennessy.
* Distinguish distributor inventory movements from genuine end-consumer sales to prevent distributor restocking from creating misleading growth signals.
* Prioritise products with strong brand premiums and repeat purchase potential while controlling production and inventory cycles.
* Review low-return promotional campaigns, sponsorships, and distribution initiatives. Evaluate marketing by incremental gross profit rather than exposure or impressions alone.
Core KPIs: Inventory days, end-consumer sales growth, contribution profit per unit, and operating cash flow.
5. Watches & Jewelry: Turn Growth into Sustainable High-End Customer Value
The segment recorded 6% organic growth in Q3 and 8% growth over the first nine months, driven primarily by jewellery.
Reform priorities should include:
* Evaluate the profitability and quality of growth at Tiffany, Bvlgari, Chaumet, TAG Heuer, and other brands separately.
* Strengthen pricing power through high jewellery, iconic collections, and products with distinctive brand identities.
* Increase repeat purchases through appointment-based services, repairs and maintenance, private client events, and customer relationship management.
* Review the returns on new flagship stores, renovations, and brand events instead of pursuing store expansion for its own sake.
* Manage watch distribution and channel inventory more cautiously to avoid oversupply when end-consumer demand weakens.
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Jewellery and watches should not be treated as identical businesses. Their purchase motivations, inventory risks, product cycles, and repeat-purchase patterns differ materially.
6. Perfumes & Cosmetics: Build a Higher-Frequency Consumer Revenue Base
The segment recorded 1% organic growth in Q3, while revenue was flat over the first nine months. It can serve as a customer entry point and provide relatively frequent purchasing occasions, but the quality of growth must still be validated through profitability.
Specific measures:
* Build profitability around core fragrances, established beauty products, and high-repeat-purchase ranges.
* Measure incremental profitability before and after new product launches to prevent new products from merely cannibalising existing sales.
* Assess the returns on research and development, advertising, celebrity endorsements, distribution, and promotions separately by brand.
* Strengthen direct online sales, membership programmes, and repeat-purchase management without allowing distribution expansion to inflate customer acquisition costs.
* Introduce staged investment thresholds for new products: small-scale testing, repeat-purchase validation, profitability validation, and only then broader expansion.
III. Phase Three: Establish a Group-Wide Capital Allocation System Over 24–36 Months
This is arguably the most important reform and also one of the easiest to overlook.
LVMH’s challenge is not merely identifying which brands are growing fastest. It is determining how the Group allocates capital, talent, store space, marketing budgets, and management attention to the businesses offering the strongest long-term returns.
7. Establish an Internal Capital Allocation Committee
I recommend a committee involving senior representatives from finance, strategy, brand management, and risk management. It should apply consistent evaluation standards to major investment decisions.
Decision Recommended evaluation criteria
Opening a new flagship store Incremental cash flow, payback period, ROIC
Brand acquisition Normalised free cash flow, valuation multiples, synergies
Brand marketing Incremental sales, incremental gross profit, customer retention
Production expansion End-consumer demand, capacity utilisation, inventory risk
Low-return businesses Scenario analysis covering restructuring, reduced investment, divestment, or retention
Shareholder distributions Free cash flow, balance-sheet resilience, cost of capital and alternative investment opportunities
Every investment should have a consistent pre-investment business case, post-investment review, and exit or restructuring framework. A brand’s history, size, or management preference should not automatically justify continued capital allocation.
8. Replace Revenue-Only Incentives with Profit and Cash Flow Accountability
Every brand and business segment should use a consistent operating dashboard.
Recommended Group operating dashboard
* Revenue quality: Organic growth, full-price sell-through, repeat purchase rates.
* Profit quality: Gross margin, operating margin, incremental profit.
* Cash flow quality: Free cash flow, inventory, working capital.
* Capital efficiency: ROIC, payback period, asset turnover.
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Executive compensation should also be revised. Managers should not receive substantial bonuses merely because revenue grows. If revenue increases while operating profit, cash flow, or capital returns deteriorate, incentive payouts should be constrained.
At the same time, the system must prevent management from sacrificing necessary creative research, craftsmanship training, and long-term brand building to improve short-term earnings.
🐻👝：IV. Recommended Reform Priorities
Priority Reform initiative Time frame Core objective
1 Review Fashion & Leather Goods 0–90 days Identify the causes of weakness by brand, region, and product line
2 Improve inventory and full-price sell-through 0–90 days Protect pricing power and cash flow
3 Strengthen China customer management and brand reputation 0–6 months Restore customer confidence and repeat purchases
4 Review Sephora’s profitability 0–12 months Convert growth into higher profit and ROIC
5 Optimise jewellery, spirits, and beauty businesses 3–12 months Consolidate growth and improve cash conversion
6 Reform capital allocation and executive incentives 6–24 months Improve long-term capital returns
7 Reassess the brand portfolio and acquisition strategy 12–36 months Reduce capital tied up in low-return activities
These time frames are recommendations, not forecasts of the results that the reforms will achieve.
V. What Targets Would I Set If I Were on LVMH’s Board?
I would not immediately promise that revenue growth must return to a particular rate next quarter. I would first establish a reliable baseline and then set measurable targets.
* Fashion & Leather Goods: Stabilise sales and aim to improve the organic growth trajectory over the next two quarters, ensuring that any recovery is not driven by discounting or channel stuffing.
* Group margins: Require each brand to provide a bridge analysis of gross margin, operating margin, and expense movements, identifying whether profit deterioration results from volume, pricing, product mix, foreign exchange, or costs.
* Inventory: Reduce slow-moving inventory and dependence on discounting while improving inventory turnover.
* Sephora: Increase profit per square metre and returns on new stores rather than focusing exclusively on sales growth.
* Capital returns: Require major investments to demonstrate expected returns above an appropriate cost of capital, followed by post-investment verification.
* Management accountability: Hold managers accountable for controllable execution failures without attributing all demand weakness to brand-level management when macroeconomic conditions are the primary cause.
These targets should be quantified further using the FY2026 financial statements and baseline data for operating profit and cash flow by business segment.
Final Assessment
LVMH should not use growth in Sephora, jewellery, and champagne to conceal weakness in Fashion & Leather Goods. Nor should it respond to declining sales with indiscriminate price cuts.
The appropriate sequence of reform is:
First, restore the product and customer value of core brands. Next, improve profitability and cash flow across the business. Finally, use capital allocation and incentive mechanisms to ensure that capital is consistently directed towards the highest-return opportunities over the long term.
If I could prioritise only one reform, I would establish an integrated brand-level review of profitability, inventory, customer repeat purchases, and capital returns for core brands such as Louis Vuitton and Dior.
This would be more effective than indiscriminate layoffs or advertising cuts because it would help the Board determine whether the underlying problems stem from the economic cycle, products, pricing, distribution, or management execution.
love you felix i love show