LVMH, known for luxury brands like Louis Vuitton and Christian Dior, faced a slowdown in sales growth during the third quarter. Shoppers held back on spending, impacting the company's revenue. Organic revenue from their fashion and leather goods unit, including those prestigious brands, increased by 9%, falling short of the expected 11.2% rise. Meanwhile, sales in their wines and spirits unit plummeted by 14%, worse than anticipated.
The luxury powerhouse has seen some challenges recently, as China's economic recovery has been less robust, and demand from US consumers has cooled. LVMH, which was Europe's most valuable company, recently lost that title to Novo Nordisk. While its shares fell nearly 20% from their peak in April, they are still up 7.9% for the year. Overall, the group reported a 9% organic revenue growth, which was also below what analysts had predicted.
This development with LVMH is closely watched as an indicator for the luxury industry, and we'll see how other luxury brands like Hermes International and Gucci's owner, Kering SA, perform when they report their results later this month
Reference: https://www.businessoffashion.com/news/luxury/lvmh-sales-growth-slows-as-global-luxury-demand-cools/
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