We don’t let anything like a pesky global economic downturn get in the way of us and our handbags!

So interesting that LVMH and Hermes posted record earnings this quarter, when everyone else is getting totally hosed.  Starbucks is closing doors left and right and Bennigans is shutting down completely but we’re buying luxury bags and designer jewelry in record numbers!

We see that here at FASHIONPHILE.  It seems like people are needing cash- so we’re getting a ton of consignments.  But, people also are into the luxury handbags that they’ve gotten used to when the times were fat- so they’re still buying.  They just are willing to buy pre-owned to save a little money!

Read the story in Vogue…

the Wall Street Journal…

and Bloomberg.

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(Cake not authorized by Louis Vuitton nor served to the bloggers at the little get together…)

Full disclosure here: I’m totally jealous, would have loved to have been invited, etc. etc. But, I’m also of course happy to give my two cents on it.

So, Louis Vuitton invites about 15 fashion bloggers- Bag Snob, Fashion Indie, Nitrolicious, Fashion Tribes, Fab Sugar, Haute Concept, Get Kempt, Gala Darling to a little get together to answer the question, “How do we work with you?”

It’s soooo smart for LVHM to connect with these folks. I mean, they pay bloggers absolutely nothing- to write about what they (LVMH) happen to be selling. You can’t buy that kind of publicity.

Or can you? I’m just hoping that it takes more than a little face to face with LV Brass, a couple croissants & a coffee or two to get some of our favorite “independent” fashion bloggers to lose their objectivity.

I was disappointed in this comment in response to the meeting from one of our favorite bag bloggers, Bag Snob:

“While you may be tempted by eBay and other unauthorized outlets, the only safe bet to ensure the authenticity of your LV bag is to purchase at an LV boutique.”

;(

I mean, obviously another totally safe bet would be to buy a bag from www.eluxury.com, owned by LVMH.

And hey, there a ton of reputable consignment and resellers of Louis Vuitton both online and off. For sure, you have to be careful- there are thousands of ways to get scammed online. But, if you buy from a seller like us here at FASHIONPHILE, you really can be confident that #1) your bag is authentic and #2) if there are any problems whatsoever, we’ll make it right.

As we’ve been told, we’re “the best kept secret in Beverly Hills.” If you’re interested in an authentic vintage, limited edition or currently available authentic Louis Vuitton piece… you can not only pick that item up from us for sometimes hundreds of dollars below retail- but you can trust us!

Don’t drink the Koolaid!

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(Founder and Chief of LVMH, Bernard Arnault)

Apparently, Bernard Arnault isn’t worried about the recent boycott of LVMH that’s spread across cyber space through Chinese blogs, chat rooms and discussion forums. The Cyber Boycott includes not only Louis Vuitton handbags and accessories, but all 60 companies owned and operated by LVMH including Christian Dior, Tag Heuer, Fendi, Marc Jacobs, etc. So far, over 20 million people have signed online petitions to join the boycott. (Read more here: NYT)

China is Louis Vuitton’s third largest market (behind Japan and the USA)… but Arnault said in Le Figaro, “The consequences for our company are very limited”. (Read more here: Forbes)

(Picture Credit: Patrick Kovarik for the New York Times)

The boycott stems from not only the little debacle as the Olympic torch worked its way through Paris, April 8 but general Western support of Tibet. Protesters for Human Rights and Tibetan freedom actually managed to extinguish the flame a few times in the scuffle.

Arnault actually said in response to the torch incident, “If we want to have dialogues with China, the Olympic torch should not have been a target of attacks when it passed Western cities… boycotting the Olympics is not a solution.”

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(Yves Carcelle, LVMH Chairman & CEO)

While the dollar flounders, house values plummet and folks from the very top are no longer only whispering rumors of a US recession… Louis Vuitton again posts huge gains in first quarter sales.

LVMH reported 5.3% gain first quarter. They saw growth in every catagory but wines and spirits (folks must be resorting to cheap liquor to drink away their economic woes). Watches & Jewelry rose 11.6% with $332.9 million in revenue.

But, my personal favorite- the fashion and leather goods group reported the highest revenue. With all the price increases we’ve seen in the last year, I am not suprised. Fashion and leather goods rose 7.1% to $2.3 billion.

Interesting quote:

“But it’s not as if the economy hasn’t affected LVMH altogether. If the euro wasn’t so strong compared with other currencies — particularly the dollar — revenue would be much higher. There’s little doubt the brands have lost some aspirational customers — those who buy small items like Louis Vuitton keychains, or J’Adore Dior perfume. The company plans to combat this by continuing to expanding in emerging markets, particularly China and Russia.”

Read the article from Forbes…
From FoxBusiness…
From Marketwatch…
From Bloomberg…
From Reuters… 

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Yes, why not? I mean, after all- we’re the ones paying the always reliable price increases. So basically, I’m personally taking some credit for the 8%, or $3 Billion (yep- 9 zeros!) profit last year.

Don’t have time to read the article from Bloomberg? Here are the “cliffsnotes”:

1. profit rose 8 percent last year
2. LVMH Chairman Bernard Arnault forecasts a “tangible increase” in results this year
3. “Spending on luxury goods will double to 300 billion euros in five years”

Fascinating quote:

“Never Full bags, which cost up to $655 and can be turned inside-out, helped to stimulate sales in Japan, the source of about 15 percent of revenue. They contributed to an 8 percent gain in sales to 5.63 billion at LVMH’s fashion and leather- goods division, its main unit, after sluggish Japanese demand weighed on sales across the industry last year.”

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(Louis Vuitton’s Asneires, France workshop)

No. Not yet anyway. We know that Louis Vuitton currently has “workshops” in France, the USA, Spain, Italy & Germany… but I thought this was a fascinating article about the wonderful Indian leather company, Hidesign Leather.

Dilip Kapur, President of Hidesign talks about the painstaking process that goes into the hand treatment of their leather. Their methodology is admirable: expensive, but eco-friendly… and apparently I’m not the only one who thinks so. Dilip said in the article:

“That’s what Louis Vuitton liked the most about us — our craftsmanship and the skills of our workers”

Hmmm, interesting. I wonder why LVMH is evaluating his business?

Last year, I read the wonderful book, The World is Flat, by Thomas Friedman. It’s clear that everyone else is taking advantage of the economical, plentiful, hardworking, but skilled labor pool in India… I guess, why not Louis Vuitton?

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