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On Tuesday, for the third quarter of 2024, global luxury leader LVMH reported a 5% sales decline for its fashion and leather goods division, inclusive of Louis Vuitton, Dior and Loewe. This dip came as a surprise to analysts, who had projected growth of up to 2% for the division.
The results show that even industry giants with big marketing budgets are feeling the pressure of a slowing global economy. Group-wide, LVMH’s third-quarter sales fell 3% on an organic basis to €19.1 billion ($21 billion), demonstrating “good resilience in the current context,” according to the company’s press statement. The fashion and leather goods segment saw a 3% decline to €30.9 billion ($32.4 billion), watches and jewelry dropped 5% to €7.95 billion ($8.35 billion) meanwhile, selective retailing grew 1% to €12.4 billion ($13.02 billion) year-over-year.
The underperformance was felt across key brands in LVMH’s portfolio. Louis Vuitton experienced softer consumer demand in China and economic pressure in other markets. According to LVMH CFO Jean-Jacques Guiony, growth was slower than anticipated, particularly in travel and leather goods. This week, influencers were gifted the brand’s new reversible Neverfulls totes and posted reviews on TikTok and Reels.
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