LVMH’s (LVMUY) second-quarter results, with tepid sales disappointing investors, showed that the pullback by consumers on high-end items and cooling Chinese spending is affecting even the world’s largest luxury firm.
The company, whose brands include Dior and Louis Vuitton, reported Q2 year-over-year organic revenue growth of just 1% to 20.98 billion euros. Sales in Asia excluding Japan plunged 14%, although Chinese spending growth in Japan and Europe was “strong.”
“In an uncertain geopolitical and economic environment, the group remains confident and will maintain a strategy focused on continuously enhancing the desirability of its brands,” LVMH said.
LVMH Results Drag Luxury Sector Lower
The results took a toll on shares of LVMH, which was until recently seen as being upscale enough to escape the hit on luxury spending. Its shares were down 4% in French trading, while those of its rivals also dropped.
Trench coat maker Burberry (BURBY), which last week said it …