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Observations In Luxury

Slowing sales growth at LVMH indicates the possible end of global luxury’s post-pandemic boom

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October 19, 2023
Oct 19, 2023

The period in the immediate aftermath of the COVID-19 pandemic may have been a time of relative plenty for many high-end brands, but the evidence seems to be pointing increasingly to that boom having come to an end. 

The French group LVMH Moët Hennessy Louis Vuitton revealed its organic revenue data for the third quarter on Tuesday 10th October, confirming that growth had softened during those three months. 

Organic revenue at the conglomerate’s fashion and leather goods unit – within which the Christian Dior and Louis Vuitton brands are contained – increased by 9%, compared to the 11.2% rise analysts had anticipated. 

The organisation’s wines and spirits unit, meanwhile, recorded a 14% fall, which was much worse than the predictions. 

No longer the most valuable company in Europe 

LVMH, which also counts the likes of Tiffany & Co, Givenchy, and Fendi in its portfolio, has also seen its shares slide by nearly a fifth since April. However, Business of Fashion reported that shares in the company were still up by 7.9% since the start of 2023. 

Such observable trends come amid the luxury group having also recently lost its status as Europe’s most valuable company to the drugmaker Novo Nordisk A/S. 

It is perhaps not a combination of figures and events that should be greatly surprising, given that there has been much talk of cooling demand from United States customers, as well as an underwhelming post-COVID-19 recovery in China. 

Even the overall organic revenue growth of 9% that the group posted, was shy of estimates. And with LVMH being widely regarded as a bellwether for the luxury sector as a whole, many observers will be expecting similar trends to be apparent in the figures that competitors Kering SA and Hermes International report later in October. 

Amid challenging times, Skywire London can help put your brand in the best position for success 

During a period when even some of the biggest players in the luxury, lifestyle, and fashion sectors are seeing major challenges to their growth ambitions, it is crucial that your business is well-placed to tackle the risks it faces. 

Reach out to the digital, creative, and strategic experts of our luxury brands marketing agency today, to ensure you benefit from the proven expertise and assistance of Skywire London, which consistently delivers digital excellence for organisations in these specialised industries.  


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