MC: Louis Vuitton Owner LVMH Posts Surprise Drop in Third-Quarter Revenue

French luxury giant said the 3% drop in sales was driven by lower buyers’ appetite from Japan where a stronger yen dampened spending.

• LVMH MC, the world’s largest luxury-goods company, released not-so-luxurious third-quarter earnings results. Lower revenue that missed analysts’ consensus calls revealed a flailing market for high-end products, premium bags and pricey champagne. Revenue at the conglomerate, led by billionaire Bernard Arnault, fell 3% year-over-year to €19.08 billion ($20.82 billion), sliding below expectations of €19.94 billion.
• The company blamed the slowdown on a pullback in spending by Japanese consumers, who were dealing with a fast-rising Japanese yen, making imported goods more expensive. More broadly, LVMH said Asian consumers were hesitant to pop open their wallets and shop luxury. Shares of LVMH fell about 2% on Tuesday, valuing the company at €318 billion. At one point, LVMH, which owns high-end brands such as Louis Vuitton and Dior, was worth more than €500 billion.
• Despite the pullback, LVMH stayed upbeat for the outlook of its business, saying that despite “uncertain economic and geopolitical environment, the Group remains confident and will maintain a strategy focused on continuously enhancing the desirability of its brands, drawing on the authenticity and quality of its products, excellence in distribution and agile organization.”