Louis Vuitton- and Dior-owner LVMH reported first-quarter sales up 3 percent on an organic basis, confirming fears that luxury demand would continue to stall as slowing economic growth, a renewed emphasis on travel and experiences and customer fatigue with logo-heavy merchandise all take a toll on the sector.
The result was in line with analyst estimates but lower than projections for global inflation (expected to be 5-6 percent this year) and made Q1 LVMH’s slowest quarter since 2020.
The group’s key fashion and leather goods division grew 2 percent on an organic basis. While Louis Vuitton and Loro Piana both had an “excellent” start to the year, the group emphasised its focus on creative momentum at its other houses, implying a less-than-stellar performance.
Watches and jewellery sales fell 2 percent, less than one year after the reopening of Tiffany & Co’s “Landmark” flagship in New York.
The group’s Selective Retailing unit offered the company’s brightest spot. “Remarkable growth” at cosmetics giant Sephora drove 11 percent growth for the division even as duty-free retailer DFS continued to struggle, LVMH said. Perfume and cosmetics sales grew 7 percent.
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