LVMH shares tumble on looming drop in Chinese demand
The world's biggest luxury goods firm reported stronger-than-expected sales growth in its fashion and leather goods unit, while overall revenue met expectations, in the third quarter
Paris — Robust appetite in the third quarter for Louis Vuitton handbags and other high-end goods sold by LVMH failed to dispel fears of a looming slowdown in Chinese demand on Wednesday, as shares across the sector tumbled. On Tuesday, LVMH, the world's biggest luxury goods company, reported stronger-than-expected sales growth in its all-important fashion and leather goods division in the three months to end-September, while overall revenue met expectations. Shares were down 4.25% by 8.32am GMT, while those at Gucci-owner Kering, LVMH's cross-town rival, were also 5% lower. Stocks in French handbag maker Hermes, the UK's Burberry and Italian luxury puffer jacket firm Moncler were also hit. A simmering trade war between Beijing and Washington and its potential knock-on effect on Chinese consumers, the number one clientele for luxury goods manufacturers, has rattled investors in recent months. Falls in the yuan have also added to concerns that shoppers will lose purchasing power, with...
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