LVMH sales growth slips on luxury spending slowdown

17 Apr 2024

LVMH's, opens new tab sales slowed in the first quarter as rising prices prompted more shoppers who aspire to own its luxury labels to hold back on splashing out thousands of dollars on handbags and other accessories.
Slower sales growth of 3% reflected comparisons with the same quarter in 2023, when sales were boosted by the lifting of COVID-19 curbs in LVMH's key market of mainland China and comes amid worries about a prolonged global slowdown which has knocked shares in luxury companies over the past year.

The world's largest luxury group, owner of Louis Vuitton, Tiffany & Co. and Bulgari, said on Tuesday that sales for the quarter ending in March rose 3% on an organic basis to 20.69 billion euros ($22 billion), matching analyst expectations.

On a reported basis, sales at the group were down 2%, largely due to currency effects.

LVMH, which is Europe's second-largest listed company and worth nearly 400 billion euros, is the first luxury goods maker to report quarterly earnings, setting the tone as worries grow about demand in China, the world's No. 2 economy.

Gucci-owner Kering, opens new tab last month issued a surprise warning that first quarter sales would slump 10%, with sharp declines in Asia, casting uncertainty for the sector's outlook.

LVMH said its Asia sales, excluding Japan, were down 6%, with growth of 2% in both Europe and the United States.

The results were "broadly OK" against the most difficult comparison period of the year, said analysts at Bernstein, and would likely support LVMH's stock.