Key facts
- LVMH reported Q3 organic sales growth of 1%, missing analyst expectations.
- The fashion and leather goods division saw a 5% fall in organic sales.
- Total organic sales for the quarter reached €18.28 billion.
- Analysts expected 1.3% organic sales growth for the group.
- The fashion and leather goods division was expected to decline by 1.8%.
LVMH reported weaker-than-expected third-quarter sales, missing analysts' expectations as a sharp deterioration in Chinese consumer mood hit demand for its flagship brands Louis Vuitton and Dior. The trading update from the world's largest luxury group is likely to heighten concerns that the luxury industry will struggle to regain momentum.
LVMH reported third-quarter organic sales growth of 1% year-on-year, falling short of analyst expectations. The company's key fashion and leather goods division, which includes flagship brands Louis Vuitton and Dior, experienced a 5% decline in organic sales, a steeper drop than the 1.8% decrease anticipated by analysts.
Overall organic sales reached €18.28 billion ($20.40 billion), below the 1.3% increase forecast by Visible Alpha consensus. The weak performance in the fashion and leather goods segment, which accounts for nearly half of LVMH's revenue, is likely to concern investors already worried about a three-year slowdown in the $350 billion luxury sector and its ability to regain previous momentum.