Unlock the Editor’s Digest for free
Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.
LVMH’s sales fell in the third quarter as the world’s largest luxury group contended with ebbing luxury demand in what it described as an “uncertain economic and geopolitical environment”.
Group revenues at the conglomerate controlled by French billionaire Bernard Arnault dropped 3 per cent to €19.9bn, below consensus estimates that sales would be up 1 per cent.
Sales in the core fashion and leather goods division, which is seen as a bellwether for the industry, fell 5 per cent year on year compared with the same period a year ago, underperforming Visible Alpha analysts’ consensus of 1 per cent growth.
The company said the decline in growth in the third quarter “mainly arose from lower growth seen in Japan, essentially due to the stronger yen”.
Pressure on sales in Asia outside of Japan continued to weigh down on LVMH, with sales in that region falling 16 per cent in the third quarter.
With more than 75 brands, LVMH spans luxury segments from the closely watched fashion and leather goods division to watches, jewellery and travel.
This is a developing story . . .
