PARIS – Luxury giant LVMH Moët Hennessy Louis Vuitton posted a 4.4% decline in sales in the third quarter, below market expectations, due to slowing growth in Japan as Japan recovers from the recent depreciation of the yen. .
The world’s largest luxury goods group reported its results after the market closed, with sales totaling 19.07 billion euros for the three months to September 30, beating Visible Alpha’s consensus forecast of 20.01 billion euros. It was announced that it was lower.
Excluding currency effects, sales were down 3% year over year, marking a slowdown from the second quarter, when organic revenue rose 1%.
The main fashion and leather goods (FLG) division posted sales of €9.15 billion in the third quarter, down 5% in constant terms compared to the same period last year and significantly below Visible Alpha’s 1% forecast. increase.
Organic sales for watches and jewelry were down 4% in the third quarter, and wine and spirits were down 7%. On the bright side, perfumes and cosmetics increased by 3% and select retail by 2%.
Unusually, the press release did not include any words from Chairman and CEO Bernard Arnault. LVMH merely reiterated its outlook for this year.
“In an uncertain economic and geopolitical environment, the Group remains confident and leverages the reliability and quality of its products, outstanding distribution and agile organization to continue to improve brand favorability. “We will continue to maintain a strategy focused on increasing sales,” the company said.
LVMH, the luxury conglomerate that owns more than 75 brands including Louis Vuitton, Dior and Tiffany & Co., said: “LVMH will leverage its strong brands and the talent of its team to once again become a world leader in luxury in 2024. “We will strengthen our leadership position,” he added. And Sephora.
The fate of luxury goods stocks will be closely tied to announcements on China’s economic stimulus package aimed at countering sluggish economic growth linked to factors such as a weak real estate market and high youth unemployment. are.
The world’s second-largest economy, a key driver of luxury spending, risks missing its goal of growth of around 5% in 2024, analysts said.
LVMH’s share price has fallen 27% from its annual high of 872.80 euros on March 14 as inflation curbs discretionary spending.
LVMH will be the first major company to report third-quarter sales, which will set the tone for the rest of the industry. French group Kering will release its third quarter numbers on October 23rd, while Hermès International is expected to release its third quarter numbers on October 24th.
