Published by Global Banking & Finance Review®
Posted on May 28, 2025
2 min readLast updated: January 23, 2026
Add as preferred source on GoogleLVMH can increase luxury product prices by 2-3% without affecting demand, but faces challenges with beauty and cognac prices.
PARIS (Reuters) -French luxury group LVMH has room to raise prices of high-end products by around 2-3% without likely affecting demand from luxury clients, but it would be difficult to lift prices of cognac or beauty products, company executives said on Wednesday.
"We can increase prices by 2% to 3% per year," deputy CEO Stephane Bianchi told members of the French parliament in a hearing on Wednesday, when asked about his group's ability to offset potential tariffs.
Citing the example of high jewellery, Bianchi said buyers of the group's most expensive products would absorb such price hikes, but cautioned that "this does not mean the (price) elasticity is infinite".
U.S. President Donald Trump this week backed away from his threat to impose 50% tariffs on imports from the European Union next month, restoring a July 9 deadline to allow for talks between Washington and the 27-nation bloc to produce a deal.
Raising the prices of lower-priced beauty products and cognac would be more complicated, added finance chief Cecile Cabanis, saying "the capacity to raise prices is not there".
LVMH executives said they still plan to continue investing in China, although they had noticed that Chinese consumers have been travelling and spending less over the past three months.
Demand in the United States, however, showed the first signs of a rebound, but as long as trade tensions with the European Union over threatened tariffs are not being eased, the climate will remain difficult, said Bianchi.
(Reporting by Tassilo Hummel and Mimosa Spencer; Editing by Kirsten Donovan)
LVMH plans to increase prices by around 2-3% per year.
According to LVMH's deputy CEO, a 2-3% price increase is unlikely to affect demand from luxury clients.
Raising prices on lower-priced beauty products and cognac is more complicated, as the capacity to raise prices is not there.
LVMH executives noted that Chinese consumers have been traveling and spending less over the past three months.
Demand in the United States has shown the first signs of a rebound, although trade tensions with the European Union remain a concern.
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