- LVMH reported Q3 sales of €19.08bn, missing market expectations of €20.05bn.
- Fashion & Leather Goods sales fell 5% to €9.15bn (vs €9.82bn consensus).
- Perfumes & Cosmetics sales rose 3% to €2.0bn.
Aarin Chiekrie, equity analyst, Hargreaves Lansdown:
“After several years of eye-watering post-pandemic growth for LVMH, sales have slipped into negative territory. The group will be hoping that this proves to be more of a blip rather than a new trend of some of LVMH’s high-end goods falling out of fashion. Growth was pretty mixed across all of its divisions, with a poor performance in particular from the Wines & Spirits unit leaving the group feeling worse for wear.
There were some diamonds in the rough though. Demand for Perfumes & Cosmetics helped to mask the scent of a poor showing in other areas. Brands like Givenchy and Christion Dior with the world’s leading fragrance, Sauvage, helped pick up some of the slack. This is what sets LVMH apart from many of its peers. Its vast stable of blockbuster luxury brands means it’s more diversified and often better able to ride out some of the ups and downs in the market. And while it’s still too early to tell, it’s hoped that China’s ongoing stimulus blitz could market a turning point for luxury companies like LVMH.”
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