LVMH’s Luxury Empire Hits a Speed Bump: 3rd Quarter Performance Plummets to Post-Pandemic Low
Global Luxury Goods Market Sees Unprecedented Decline
The luxury goods industry, once thought to be immune to economic downturns, is experiencing a significant decline in sales. According to recent reports, the third-quarter performance of major global luxury brands, including Louis Vuitton and Dior, has plummeted.
LVMH Records Worst Quarterly Performance Since 2020
Louis Vuitton Moët Hennessy (LVMH), the world’s largest luxury goods company, recorded global sales of 19.076 billion euros (approximately 28.6 trillion won) in the third quarter of this year. This represents a 3% decrease from the same period last year, marking the worst quarterly performance since the second quarter of 2020, when the COVID-19 pandemic was at its peak.
Sharp Decline in Asian Sales
LVMH’s sales in Asia (excluding Japan) decreased by 17% compared to the same period last year. Jean-Jacques Guiony, LVMH’s Chief Financial Officer, stated that “consumer confidence in mainland China, our largest market, is at the same level as the all-time low during the COVID-19 pandemic.”
Kering Group Also Sees Significant Decline
The Kering Group, which owns Gucci and Balenciaga, reported a 16% decrease in sales compared to the same period last year (3.786 billion euros) in the third quarter of this year. Kering attributed this decline to the challenging situation in the Asia-Pacific region.
Shift to Affordable Luxury Goods
This decline is expected to continue, with Reuters reporting that “Chinese consumers are turning to inexpensive, used luxury goods.” This shift in consumer behavior may signal a longer-term trend in the luxury goods market.
Key Statistics:
LVMH’s global sales: 19.076 billion euros (approximately 28.6 trillion won)
LVMH’s sales in Asia (excluding Japan): -17% compared to the same period last year
* Kering Group’s sales: 3.786 billion euros (16% decrease compared to the same period last year)