Louis Vuitton to curb staff discounts
Louis Vuitton is curtailing large discounts for staff members and their families after a French tax authority decided that bargain prices on high fashion should be considered a taxable benefit, according to people familiar with the matter.
The LVMH brand has agreed to put an end to staff discounts as high as 90pc for unsold products, said the people.
The company is now capping the reductions at around 75pc, which will more than double prices for French employees. Limiting the perk could also complicate Louis Vuitton's policy of never selling at a discount in stores, because the internal sales have helped the brand clear away extra stock when items like €2,500 silk vests fail to sell.
The maker of handbags and trunks has boosted its range of seasonal products like ready-to-wear fashion and shoes in recent years, increasing the risk of excess stock.
Please log in or register with Independent.ie for free access to this article.
A Louis Vuitton spokeswoman declined to comment. The French tax authority did not immediately respond to a written request for comment.