LVMH's high-price/low-volume model yields significantly better margins than low-price/high-volume competitors.
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Financial EducationPublished Aug 24 · 1 passage
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I've always really loved LVMH's business model. I've never personally owned the stock, but I love it, right? I mean, it's amazing. They can sell a $4,000 purse, one customer, $4,000 of revenue versus, you know, another company needs to sell to 100 customers a $40 purse, right?
And so, they can both bring in the same revenue, but these margins are going to be just much better. Much better margins than this particular company, right?
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2026-08-24BullishThis one
I've always really loved LVMH's business model. I've never personally owned the stock, but I love it, right? I mean, it's amazing. They can sell a $4,000 purse, one customer, $4,000 of revenue versus, you know, another company needs to sell to 100 customers a $40 purse, right? And so, they can both bring in the same revenue, but these margins are going to be just much better. Much better margins than this particular company, right?