LVMH fashion sales drop 5 percent in third quarter amid weak Chinese demand
LVMH reported a 5 percent fall in fashion and leather goods revenue for the third quarter of this year.
Regional performance varies widely
Group sales rose 1 percent to 18.5 billion euros overall, driven by growth in the United States, Europe, and Japan. However, sales in Asia excluding Japan declined by 5 percent during the period. The US market saw an increase of 5 percent while Europe grew by 4 percent.
Specific brand results differ
Louis Vuitton sales fell slightly below the division average, whereas Dior remained flat for the quarter. Loro Piana continued to experience very strong growth despite the broader downturn in the sector. The company did not release specific sales figures for every individual brand.
Management cites external factors
CFO Cécile Cabanis noted that a deteriorating feel-good factor among Chinese consumers contributed to the decline. She also pointed to ongoing challenges in the Middle East as a headwind for performance. The executive stated that self-help initiatives are now a priority to improve future results.
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