The author is a Reuters Breakingviews columnist. The opinions expressed are his own.
The Great Debate
Less is more. But apparently luxury companies don’t feel that applies to their swollen store networks. Labels like Prada and LVMH have spent a decade expanding rapidly to meet emerging market demand. Slowing sales and overexposure suggest it’s time to go the other way. While cutting back will be painful, it could spur higher luxury valuations.