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Louis Vuitton Trademark Dispute Leads to Sales Slump in China

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Louis Vuitton Trademark Dispute Leads to Sales Slump in China

Luxury retail company LVMH saw quarterly sales slump following a trademark dispute in China.

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Organic revenue for the company’s fashion and leather goods unit fell 5% year over year in the third quarter, LVMH Moët Hennessy Louis Vuitton announced in a Monday (Oct. 12) press release, with the company’s total revenue for the quarter up 1%.

Louis Vuitton sales suffered in China after the company achieved a victory in a trademark battle with local tea company Molly Tea, Bloomberg reported Monday. This led to backlash from Chinese consumers, angry that the world’s biggest luxury company would take a much smaller merchant to court.

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Sales in the region including China dipped 5% in the quarter, the report said, marking the only area where LVMH saw negative performance, the report said. The company’s American depositary receipts dropped as much as 3.6% in New York following the release of the numbers.

LVMH’s stock is down more than 40% this year, on pace for the company’s worst yearly performance since 2008’s global financial crisis, according to the report. Although much of the industry is seeing a downturn in demand, LVMH’s stock is the worst performer this year among major luxury names, followed by rival Hermes.

Gucci’s revenue fell 5% on a comparable basis in the first half of 2026, including a 6% drop at directly operated stores, PYMNTS reported Sept.


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