LVMH Moët Hennessy Louis Vuitton reported a sharp slowdown in sales growth as the world’s biggest luxury-goods company struggled to lure big-spending Chinese consumers back to its boutiques after the end of China’s pandemic restrictions.
The owner of Louis Vuitton and Dior said sales in its Asia market—which is dominated by China and excludes Japan—rose 11% over a three-month period ending on Sept. 30, stripping out the effects of currency fluctuations. That is down from a 23% rise in the first half of the year.
China’s economic woes spell trouble for LVMH and other luxury groups that built their business around the assumption that the country would continue to power the industry’s growth. Economists say worsening structural problems make it unlikely that China can extend the period of breakneck growth that made it the world’s biggest luxury market. Investor concern over Chinese spending has weighed on LVMH shares, which are down almost 20% since mid-July.
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