LVMH Reports Disappointing Q3 Sales for Fashion and Leather Division
Luxury giant LVMH reported weaker-than-expected third-quarter organic sales growth, with a notable decline in its fashion and leather goods division. The segment saw a 5% drop in organic sales, missing forecasts of a 1.8% decrease, driven by weak demand from China amid shifting consumer sentiment and regulatory pressures. The group's overall organic sales rose just 1%, falling short of analyst expectations for growth of 1.3%. Asia, particularly China, saw a 5% decline in sales year-over-year, while the US market grew by 5%. LVMH’s CFO attributed Asian underperformance to macroeconomic factors and reduced discretionary spending. The results raise concerns about broader luxury sector recovery amid ongoing challenges like geopolitical tensions and regulatory scrutiny. The news sent LVMH's shares down nearly 3%.
