The global leader in the luxury sector, Moët Hennessy Louis Vuitton, has announced its financial results for the third quarter, indicating that their total revenues grew by one percent. The lower growth than expected has been attributed to inflation and rising interest rates that affect consumer purchasing decisions and slow down demand for luxury products. The LVMH Group, which encompasses over 75 premium brands such as Dior, Louis Vuitton, and Tiffany&Co, achieved 19.96 billion euros in the last quarter, while it was previously estimated that they would generate slightly higher revenues of 21.14 billion dollars.
Lost the Title
Although revenues increased by nine percent compared to the third quarter of last year, the slowdown is most evident when compared to the second quarter when they grew by 17 percent. The fashion and leather goods category recorded 9.75 billion euros in sales, which is a nine percent increase compared to last year’s figures. Here, too, there was a decline compared to Bloomberg’s estimate of 11.2 percent, as well as the second quarter when a higher growth of 21 percent was realized.
The perfumes and cosmetics category recorded nine percent higher sales, selective retailing sales surprisingly increased by 26 percent, while watches and jewelry grew by three percent, and the wine and spirits category by 14 percent. As reported by Business of Fashion, the LVMH Group, a favorite among investors in recent years, has lost some of its shine due to a recovery in China that is weaker than expected, as well as a decline in demand from American consumers for luxury products. Additionally, last week they lost the title of the most valuable European company to pharmaceutical manufacturer Novo Nordisk A/S.
