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LVMH Q3 Sales Rise 1% as Key Fashion and Leather Goods Unit Logs 5% Decline

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LVMH Q3 Sales Rise 1% as Key Fashion and Leather Goods Unit Logs 5% Decline

The business unit, which includes the Louis Vuitton and Dior brands, was weighed down by a slowdown in demand in China, although many of the group's other divisions saw overall sales increases.

PARIS – LVMH Moët Hennessy Louis Vuitton said its key fashion and leather goods division slid back into negative territory in the third quarter, weighed down by a slowdown in demand in China.

The division, which includes brands such as Louis Vuitton, Dior and Loro Piana, posted an organic sales decline of 5 percent in the three months to Sept. 30, after breaking a two-year losing streak in the second quarter.

Analysts had revised down their expectations in recent weeks in light of a Chinese tax crackdown on wealthy individuals and the fallout of Louis Vuitton’s trademark dispute with Chinese tea chain Molly, which sparked a nationalistic backlash.

Adding to the uncertainty, U.S. credit card spending on luxury goods tracked by Citi fell for a third consecutive month in September, suggesting a potential normalization of demand in the world’s number one market for luxury goods.

LVMH said group revenues rose 1 percent in the third quarter to 18.50 billion euros, broadly in line with market expectations. This represented a rise of 1 percent in organic terms.

“In the third quarter, organic revenue growth reflected the impact on business activity of a less buoyant environment in China, while the United States, Europe and Japan saw good growth,” LVMH said in a statement released after the market close on Monday.


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