Crocs, Ralph Lauren and LV all get more expensive as clothing prices skyrocket


  • Crocs, Ralph Lauren and Michael Kors are among the retailers raising their prices.
  • Clothing prices at U.S. retailers rose nearly 5% in June, the biggest jump in a decade.
  • Increased supply chain and labor costs are among the factors behind these price increases.

Fashion retailers are raising prices and reducing discounts to make up for lost sales in 2020 and to offset rising supply chain costs.

According to the June Consumer Price Index from the Ministry of Labor, clothing prices rose 4.9% in June from a year earlier, the largest jump in a decade. Crocs, Michael Kors and Ralph Lauren are among the brands that have already raised their prices.

The crisis in the supply chain is driving up the cost of transporting goods and causing long delays. At the same time, retailers try to find workers in a tight labor market and increase wages or offer perks to attract talent.

Some say they have no choice but to pass the costs on to the consumer.

Here are some of the brands that are raising their prices:

Ralph lauren

Ralph Lauren London store window

Ralph Lauren was known for his big discounts in the past.

Mike Kemp / In pictures via Getty Images


Ralph Lauren has been increasing its prices and reducing its discounts since 2019. In its most recent quarter, its average selling prices increased 17%, he said.

CEO Patrice Louvet told investors on a results conference call that the company is adding products that can be sold at higher prices, such as jackets and coats, and is focusing on specific countries that can absorb the price increases.

Crocs

Crocs

Crocs were the iconic shoes of the pandemic.

Shoshy Cement / Business Insider


Crocs benefited from COVID-19 buying habits as consumers opted for comfortable shoes while working from home. The brand recorded record sales in the last quarter.

But it is still raising prices: Its average selling price rose 8%, to $ 21.84, in the last quarter, and it expects further price increases in 2022, mostly for Asian customers, a- he declared.

He promises to be “careful” on price increases.

“One thing we are very aware of is the consumer value that the brand delivers,” CEO Andrew Rees told Investors in July.

“We never want to be in a place where we turn consumers away because our product is too expensive in their mind… We are very careful with the prices so that we don’t push too far,” he said.

Louis Vuitton

Louis Vuitton best-seller handbag

A Louis Vuitton monogram in coated canvas Handbag Pochette Accessoires.

Edward Berthelot / Getty Images


Louis Vuitton, owned by LVMH, has raised the prices of some of its best-selling handbags. According to the South China Morning Post, the price of its Monogram Canvas Accessory Pouch has increased 25% this year, from $ 630 to $ 790. It also increased its prices in 2020.

Experts told The Post it was meant to make up for missed sales in 2020 and reinforce the idea that its products are inaccessible – which is exactly what makes them so appealing to some shoppers.

Chanel

black chanel bag

The prices of Chanel handbags are skyrocketing.

Jeremy Moeller / Getty Images)


Chanel raised the prices of its handbags to make up for missed sales in 2020. According to a note from analysts at Jefferies, the average global prices of its handbags rose 17% in early July, in addition to a rise of 18% in June 2020.

Michael kors

A Michael Kors store in New York.

Michael Kors is owned by Capri Holdings.

Spencer Platt / Getty Images


John Idol, CEO of Capri, the retail giant behind Michael Kors and Jimmy Choo, said on an earnings call in July that prices at Michael Kors have already risen and will rise “dramatically” next spring.

Idol also wants to avoid big discounts – a sales tactic that has plagued the brand in the past.

“I don’t care if our competition does. It doesn’t matter. We don’t have the inventory to do it. So it won’t happen,” Idol said.


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