LVMH posted its Q3 revenues this week, but despite a weak euro sales of
fashion saw its weakest growth this year.
Despite a 16 percent rise in Q3 revenues to 8.58 billion euros, sales of
fashion slowed to just 3 percent in Q3, down from 10 percent in Q2 and 5
percent in H1.
The slowdown was broadly anticipated by investors and analysts but even
they underestimated its extent with predictions of at least a 6 percent
rise in the fashion division. LVMH shares were down 3.5 percent in early
Tuesday trade.
The Louis Vuitton brand is by far the stellar performer in the LVMH fashion
and accessories portfolio
and is “continuing its growth and displaying strong creative momentum in
all of its collections.” The luxury giant noted that leathergoods in
particular “saw great success with the creativity around Monogram and the
craftsmanship on leather”.
But there was little detailed news regarding its portfolio of other fashion
brands with Céline, Givenchy and Kenzo “experiencing sustained revenue
growth” while Marc Jacobs and Donna Karan continued “the repositioning of
their collections”.