The Dior store on Avenue Montaigne in Paris. Luxury group LVMH relies on tent-pole brands such as Dior and Louis Vuitton for the bulk of its revenue and profits, while pouring money into turning storied but struggling brands. The depth of the industry crisis triggered by the coronavirus might force a rethink by such groups. Photo: BloombergThe Dior store on Avenue Montaigne in Paris. Luxury group LVMH relies on tent-pole brands such as Dior and Louis Vuitton for the bulk of its revenue and profits, while pouring money into turning storied but struggling brands. The depth of the industry crisis triggered by the coronavirus might force a rethink by such groups. Photo: Bloomberg
The Dior store on Avenue Montaigne in Paris. Luxury group LVMH relies on tent-pole brands such as Dior and Louis Vuitton for the bulk of its revenue and profits, while pouring money into turning storied but struggling brands. The depth of the industry crisis triggered by the coronavirus might force a rethink by such groups. Photo: Bloomberg

Cash cows and dead horses: why luxury groups such as LVMH could emerge from pandemic leaner and healthier, by shedding unprofitable brands

  • Will LVMH still have the resources to fund fashion brands that are struggling – names like Givenchy, Celine, Kenzo and Pucci – as sales plunge in wake of virus?
  • Analysts back luxury groups’ strategy of adding big brands to their portfolios and showing patience with underperformers, but their hands could be forced
Topic |   Fashion
The Dior store on Avenue Montaigne in Paris. Luxury group LVMH relies on tent-pole brands such as Dior and Louis Vuitton for the bulk of its revenue and profits, while pouring money into turning storied but struggling brands. The depth of the industry crisis triggered by the coronavirus might force a rethink by such groups. Photo: BloombergThe Dior store on Avenue Montaigne in Paris. Luxury group LVMH relies on tent-pole brands such as Dior and Louis Vuitton for the bulk of its revenue and profits, while pouring money into turning storied but struggling brands. The depth of the industry crisis triggered by the coronavirus might force a rethink by such groups. Photo: Bloomberg
The Dior store on Avenue Montaigne in Paris. Luxury group LVMH relies on tent-pole brands such as Dior and Louis Vuitton for the bulk of its revenue and profits, while pouring money into turning storied but struggling brands. The depth of the industry crisis triggered by the coronavirus might force a rethink by such groups. Photo: Bloomberg
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