LVMH, the world's most valuable luxury group, has announced an increase in demand for its flagship Louis Vuitton brand and other fashion labels in the fourth quarter, according to Reuters. Following unchanged in growth in 2013 and concerns that Louis Vuitton was losing momentum after having enjoyed impressive growth for years, sales growth is up. The conglomerate's biggest business, it makes up two thirds of its business and generates gross margins of 90 percent, growth at LV accelerated to 7 percent in the quarter to Dec. 31 from 3 percent in the previous three months, beating analysts' growth expectations of 4-5 percent.
According to Reuters, this news comes after Louis Vuitton's shares [were] among the worst performers in the European luxury goods sector in 2013." It appears, however, that the house's efforts to reposition itself as more upmarket and exclusive (think: raising prices and introducing a new collection of bags, including the Capucine) are paying off. After reports that various Louis Vuitton flagships had revealed shortages of the $4,600 Capucine bag, Chief Executive Bernard Arnault, spoke out about the iconic design house this week, saying: "We have waiting lists that are getting longer." We'll see how former creative director Marc Jacobs' final designs for the house sell and even more exciting, what direction new creative director Nicolas Ghesquière will take the famed house in his debut this upcoming Paris Fashion Week!