Luxury Leader LVMH Faces Revenue Hit Amid Economic Woes

LVMH, the world's leading luxury group, encountered a 3% dip in third-quarter sales, primarily due to climbing prices and global economic uncertainties. This marks the first quarterly revenue drop since the pandemic. The decline has heightened investor concerns, particularly in the fashion and leather goods sector.

LVMH, the French luxury conglomerate, has reported a 3% decrease in third-quarter sales, marking its first quarterly sales drop since the pandemic-induced downturn. The decline is attributed to rising prices and economic uncertainty, which have dampened consumer spending.

The company's revenue for the quarter ending in September was 19.08 billion euros ($20.8 billion), failing to meet Barclays' consensus estimate of 2% organic growth. The fashion and leather goods division, key to LVMH's revenue, saw a 5% drop, falling short of expectations for 4% growth.

This setback has stirred investor concerns about the luxury market amid reduced spending following a brief post-pandemic surge. Chinese consumers, in particular, have pulled back, further contributing to the sector's challenges. The third quarter could be the sector's worst in four years, with an anticipated 1% decline in organic sales year-on-year.

(With inputs from agencies.)