LVMH’s luxury recovery falters as Louis Vuitton and Dior owner hit by China slowdown
Just as the luxury industry appeared to be turning a corner, demand in China has weakened again. LVMH’s fashion and leather goods sales fell 5 per cent, raising fresh questions about when the downturn will end.
LVMH, the luxury goods conglomerate owned by Bernard Arnault, experienced a slowdown in sales as it attempted to recover from a near four-year downturn. The company reported a 5 percent decline in fashion and leather goods sales in the third quarter, casting doubt on when the industry will fully recover. The decline came after LVMH's previous quarter saw growth in its bellwether division for the first time in two years.
The slowdown in China, where demand has disappointed despite hopes of a turnaround, further impacted LVMH's performance. While the luxury industry's recovery was expected to be aided by strong demand in the US market, recent credit card data from Citibank showed a decline in luxury spending in the US, with a 4 percent drop in the last three months.
LVMH's share price has dropped nearly 40 percent this year, reflecting concerns about the company's growth prospects.
Written by urgent.news from Channel News Asia's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
