Western Luxury Falters in China
- Shares of LVMH, Kering, and Hermès have fallen 40% this year as luxury demand weakens, particularly among Chinese and “aspirational” shoppers.
- Third-Quarter sales declined 1% at Kering, 2% at LVMH, and 2% at Hermès, while Gucci sales fell 6%.
- China’s weak economy, falling property values, reduced spending, and new offshore-trust tax rules are pressuring luxury purchases.
- The companies remain committed to China and plan to continue investing there.
33 Articles
33 Articles
The market capitalization of major European luxury groups has evaporated by more than 370 trillion won so far this year. As consumer sentiment in China, a key market, shows little sign of recovery, the growth of the luxury industry has stalled. On the 25th (local time), the UK's Financial Times (FT) reported that the market capitalization of Europe's six largest listed luxury companies—including Louis Vuitton Moët Hennessy (LVMH), Hermès, Gucci'…
A surprising divergence is emerging in China's luxury market: spending continues to fall, some Chinese luxury brands are growing at extraordinary rates. For European luxury groups, such as Kering, Hermès and LVMH — which have attributed their disappointing results to the poor performance of sales in China — this raises the possibility that, even when the market recovers, the sales of these companies may not follow the same path. Exclusive materi…
European luxury commodity companies suffer with declining demand in China and the United States and fluctuations in stock markets, causing their market values to decline.
Luxury brand stocks plunge to lowest level in years as LVMH, Kering and Hermès hit with sales declines
Stocks for some of Europe's most famous luxury brands are plummeting to their lowest level in years as Chinese customers cut back purchases and an industry revamp fails to launch.
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