In 2011, Louis Vuitton's store in Helsinki increased its turnover by 34% to more than EUR 10 million and made a profit of EUR 2.1 million. The company has only failed to make a profit during its first year of operations, and since then profitability has increased first to 10% and now to 20% of turnover. According to Kauppalehti, a leading Finnish business daily, Louis Vuitton's profitability far exceeds the average in the retail sector, where profits in the best quarter are usually about 7% of turnover.
According to the Association of Fashion Retailers in Finland, there are several reasons which have contributed to Louis Vuitton's success in Finland. Firstly, major international brands have not been present in Finland and Louis Vuitton was well known when it arrived in Finland even without much advertising. Secondly, the boom in bags is still going strong and demand from Finnish consumers has been augmented by the many Russian tourists who buy luxury goods when visiting Helsinki.
“The company has been in the right place at the right time,” says Yrjö Gorski, managing director of the Association of Fashion Retailers in Finland. Thanks to its strong performance, Louis Vuitton has expanded its Helsinki store this winter. Louis Vuitton's operations in Helsinki are now bigger than in Stockholm, for example.