LVMH: The wealthy seem to be spending money everywhere else

The Times, London, reported this morning that LVMH (Louis Vuitton Moet Hennessy) are down in almost every sector in their fourth quarter reports. IN fact profit for the whole of 2009 fell by 8 per cent to €3.3 billion.This is a hugely different story from several other luxury companies, such as Hermes, who reported higher fourth quarters for 2009. So why are the people in the upper echelons spending money elsewhere this time around? Well there could be a number of reasons for this. But I believe there may be one reason in particular. Fashion trends during times of financial turmoil have been studied for decades. It seems that during a recession the buying public tends to stick with classic pieces that will last season after season and the trendy items tend to get left behind. Just look at the store windows as you are shopping this weekend. Colours are more subtle, if not near depressing. Blacks, grays and nudes are all the rage. Unfortunately, the brands at LVMH (such as Louis Vuitton, Marc Jacobs, Kenzo and Emilio Pucci) are all brands that are associated with bright, vibrant colours. But all is not lost….when the sun starts to shine our outlooks on life will undoubtedly look up and our quest for colour will return. Here’s to better days to come…

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