LVMH's largest division reported a 5% sales decline in the third quarter, missing analyst expectations of a 1.57% drop. The fashion and leather goods unit was hit by weakening demand in China, where a Louis Vuitton trademark victory against local tea maker Molly Tea sparked a consumer boycott in July and August. This follows a broader trend of sluggish Chinese demand impacting the luxury sector.
LVMH shares have fallen over 40% this year, marking the worst performance among major luxury groups, trailing only Hermes. The downturn reflects weaker consumer confidence and ongoing global headwinds, including Middle East conflict, dampening hopes for a rebound in the wider luxury industry this year.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing