LVMH Posts Muted Q3 Growth, Jewelry Sales Slow

LVMH posted muted growth in its third quarter, with jewelry and watch sales slowing down.
Declining demand for luxury handbags and its wine and spirits dragged down its results. The luxury conglomerate noted softening luxury sales worldwide, highlighting the United States and Europe in particular.

Here are four notable takeaways from the company’s most recent earnings report:
LVMH put on a so-so third quarter performance but saw growth in the first nine months of the fiscal year.
LVMH reported revenue growth of 1 percent year-over-year (9 percent on an organic basis) to €19.96 billion ($21.14 billion) in the third quarter.
Its fashion and leather goods division posted slower growth in the quarter compared with its double-digit jump in Q2. Its balance sheet was brighter for the first nine months, with revenue up 10 percent (14 percent on an organic basis) to €62.21 billion ($65.9 billion).

Jewelry and watch sales faltered in Q3.
In the third quarter, revenue in the watches and jewelry segment was down 5 percent year-over-year to €2.52 billion ($2.67 billion) on a reported basis but up 3 percent on an organic basis.
In the first nine months, revenue in the category totaled €7.95 billion ($8.42 billion), up 5 percent (9 percent on an organic basis)...