LVMH — EUROPEAN BAN ON DESTROYING UNSOLD GOODS CREATES INVENTORY GLUT FOR FASHION HOUSES

Luxury and fashion brands in Europe are grappling with a significant inventory surplus following the implementation of a new EU regulation that prohibits the destruction of unsold stock. The rule change, aimed at curbing waste, is forcing companies to find alternative solutions for excess goods. This has created a logistical and financial challenge for an industry accustomed to managing brand value by controlling supply.