China problems hit sales at Louis Vuitton owner LVMH: Inflation is hurting demand for luxury goods
The economic crisis in China has hit sales at the owner of Louis Vuitton and Tiffany and Co.
LVMH, the luxury goods giant owned by the world’s richest man Bernard Arnault, reported sales of 20 billion euros (£17.25 billion) in the three months to September – up 9 percent.
But sales for the company – whose brand ambassadors include actress Zendaya – were down after a 17 percent increase in the previous quarter.
Sales at LVMH – whose brand ambassadors include actress Zendaya (pictured) – had fallen after rising 17% in the previous quarter
The pace of sales growth has slowed due to inflation and a difficult economic situation in China, dampening buyers’ enthusiasm for luxury goods.
Luxury sales have hit the brakes following the economic difficulties in China, which have laid the foundation for the sector’s success in recent years.
The Chinese economy’s problems include slow growth, high youth unemployment and turmoil in the real estate market.
An LVMH spokesperson said: “LVMH is relying on the momentum of its brands and the talent of its teams to further strengthen its leadership position in the global luxury market in 2023.”