Luxury brands like Louis Vuitton have been significantly affected by the slowdown in consumer expenditure for luxury goods in China. Jean-Jacques Guiony, the CFO, confirmed this to investors, linking it to the recent fluctuations of China’s stock market during July and August. Guiony pointed out that their business is naturally impacted when there’s a large scale asset depreciation, such as the one that occurred in China where their stock market fallout caused a noticeable effect.
The company also revealed a lackluster growth in its primary fashion division sales, however, it managed to maintain stronger performance in its wine and spirits segment.
China’s pervasive economic slowdown coupled with an ongoing government anti-corruption campaign has hindered luxury spending in the past few years. Despite initially withstanding these pressures, it seems that even LVMH, the world’s largest luxury company, hasn’t managed to evade the challenges arising from China’s market.
Discover more about this on CNN Money.
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