LVMH growth cools as post-lockdown splurge fades

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1 年前

STORY: A post-lockdown spending splurge looks to be cooling off.

Luxury bellwether LVMH said late Tuesday (October 10) that its sales were up just 9% over the third quarter.

That was a slowdown on previous periods.

The company said growth levels were going back to historical averages after three “roaring years”.

LVMH owns labels including Louis Vuitton, Dior and Tiffany.

It’s the world’s biggest luxury goods firm, and closely watched as a gauge for the whole sector.

And it doesn’t seem to be immune to soaring inflation and global economic turbulence.

Demand for high-end goods has cooled in the U.S. and Europe, where consumers are battling steep price rises for all kinds of products.

In China, the economy has proved slower than expected to bounce back from restrictions.

A stronger euro also hurt, cutting the value of the France-based firm’s sales in the U.S.

However, one analyst described the latest earnings figures as “good enough” to support LVMH shares.

They’ve lost around $100 billion in value since April, as investors lowered their hopes for the luxury sector.

The slide saw LVMH unseated as Europe’s most valuable firm, losing its title to hot Danish anti-obesity drug maker Novo Nordisk.

The next big test for the luxury sector will come on October 24, when numbers are due from Hermes and Kering, owner of Gucci and other brands.