LVMH to Build New Workshop Making Louis Vuitton Bags in Italy 

A Louis Vuitton bag is seen in a shop in downtown Rome, Italy March 1, 2016. (Reuters)
A Louis Vuitton bag is seen in a shop in downtown Rome, Italy March 1, 2016. (Reuters)
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LVMH to Build New Workshop Making Louis Vuitton Bags in Italy 

A Louis Vuitton bag is seen in a shop in downtown Rome, Italy March 1, 2016. (Reuters)
A Louis Vuitton bag is seen in a shop in downtown Rome, Italy March 1, 2016. (Reuters)

LVMH, the world's largest luxury goods group, plans a new factory in Italy producing Louis Vuitton bags and other leather accessories, the Tuscany region said on Friday. 

The workshop will be the largest in Italy entirely dedicated to making these products for Louis Vuitton, said the region, which signed a Memorandum of Understanding (MoU) with LVMH. 

It will be located in the small town of Sieci and will be the third making Louis Vuitton goods in the Tuscany region. 

The MoU has a duration of three years and envisages that the total number of staff employed by LVMH in the region will rise to 450, from 270 at present.  



Estee Lauder Sees Bigger Sales Fall in 2025 on US Slowdown, Sputtering China Recovery

An Estee Lauder cosmetics counter is seen in Los Angeles, California, US, August 19, 2019. (Reuters)
An Estee Lauder cosmetics counter is seen in Los Angeles, California, US, August 19, 2019. (Reuters)
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Estee Lauder Sees Bigger Sales Fall in 2025 on US Slowdown, Sputtering China Recovery

An Estee Lauder cosmetics counter is seen in Los Angeles, California, US, August 19, 2019. (Reuters)
An Estee Lauder cosmetics counter is seen in Los Angeles, California, US, August 19, 2019. (Reuters)

Cosmetics giant Estee Lauder forecast a bigger-than-expected drop in fiscal 2025 sales on Thursday, signaling a slowdown in demand for beauty products in the American market and a longer road to recovery in the key China region.

Estee has been struggling to revive sales at airports and tourist hubs in China and other major Asian markets as consumer sentiment in the region remains weak due to high unemployment rates. Asia-Pacific, which includes China, contributed 31.3% of the company's total sales in fiscal 2024.

Its sales have also been soft in the US, with the company now facing challenges from President Donald Trump's chaotic implementation of tariffs.

Estee had pulled its annual forecast in October, citing an uncertain recovery in China, before Stephane de La Faverie took over as CEO.

His turnaround plans for the company include speeding up of new launches and bringing in new luxury price tiers. But that might face a roadblock from growing economic uncertainties due to the trade war.

Organic net sales in the Americas fell 5% on retail softness and decline in consumer confidence and sentiment.

"From a regional perspective, the Americas had the largest miss and EMEA (Europe, Middle East and Africa) was only slightly softer ... Outperformance on margins show the progress of EL's PRGP (profit recovery plan) and restructuring activities," RBC Capital Markets analyst Nik Modi said in a note.

European peer L'Oreal has also flagged weakness in the US, while it continues to see strong demand for its creams and perfume in Europe.

Estee expects fiscal 2025 net sales to be down 8% to 9%, compared with analysts' estimate of a 7.07% fall, according to data compiled by LSEG.

The company forecasts annual adjusted per-share profit to be between $1.30 and $1.55, with midpoint above the estimate of $1.40, as it starts to benefit from its restructuring plan, including job cuts.

Shares of the MAC lipstick maker were down nearly 1%.

Estee aims to return to sales growth in fiscal 2026, its CEO said, adding that this depends on the resolution of the recently enacted tariffs to mitigate potential negative impacts.

The US has imposed 145% tariffs on China, while Beijing put a 125% levy on American imports into the country.

To navigate the tariff situation, Estee expects to reduce imports into China from the US to 10% from 25%.

Estee said about a quarter of products imported into EMEA are sourced from the US, but it is working to change to regionalized and third-party manufacturing networks.