French luxury goods firm Louis Vuitton Hennessey (CAC:LVMH) slipped after recent sales performance highlighted a luxury slowdown.
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The global appetite for luxury goods has slumped, led by Chinese retail investors. On Tuesday, billionaire CEO Bernard Arnault said a sale of the firm’s assets is “not on the agenda”. The company’s DFS travel retail was said to be up for sale and its Paris department store brand La Samaritaine.
LVMH’s sales of fashion and leather goods were lower in the fourth quarter, casting doubt on the prospects for a quick recovery. Sales at the key firms, including Louis Vuitton and Christian Dior, slipped 1% on an organic basis as wealthy holiday shoppers remained cautious.
Both figures were slightly better than analysts’ estimates but disappointed investors after an upbeat report from rival firm Richemont earlier in the month. The Swiss company reported stronger-than-expected quarterly sales on its Cartier and Van Cleef & Arpels jewellery in the US.
Fears may now emerge about tariffs and recessionary pressures on overseas countries and could also hurt sales via foreign exchange moves.
LVMH shares traded near record highs in March 2024 and had Arnault rubbing shoulders with Elon Musk for the title of the world’s richest man. That has now faded as LVMH slipped, while Tesla went on a strong rally after the US election.
