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.
The luxury sector's recovery is faltering due to a slowdown in China, according to LVMH's latest financial report. LVMH, the owner of Louis Vuitton and Dior, saw a 5% decline in fashion and leather goods sales in the third quarter, marking a setback after a previous quarter of growth. The decline in Asia, particularly China, was the main factor behind this setback, as hopes for a turnaround in the luxury industry continue to fade.
The slowdown in demand in China has been attributed to conflict in the Middle East, geopolitical turmoil, and inflationary pressures, which have dampened the confidence and spending power of luxury consumers. LVMH's fashion and accessories business, however, continues to benefit from a buoyant US market. The group's sales rose 1% on an organic basis to €18.5 billion, with strong demand for jewellery and Sephora driving the growth.
Despite this, LVMH's share price has dropped nearly 40% this year, raising questions about the future of the luxury industry.
Written by urgent.news from CNA - Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
