{"id":5628,"date":"2024-07-26T22:12:29","date_gmt":"2024-07-26T14:12:29","guid":{"rendered":"https:\/\/goutanddesign.com\/wpress\/?p=5628"},"modified":"2024-07-26T22:12:29","modified_gmt":"2024-07-26T14:12:29","slug":"luxury-industry-struggles-lvmhs-sales-decline","status":"publish","type":"post","link":"https:\/\/goutanddesign.com\/wpress\/2024\/07\/luxury-industry-struggles-lvmhs-sales-decline\/","title":{"rendered":"Luxury Industry Struggles : LVMH’s Sales Decline"},"content":{"rendered":"Reading Time : <\/span> 2<\/span> minutes<\/span><\/span>

Waning appetites for the “caviar by the spoonful, washed down by champagne” lifestyle are hurting the high-end conglomerate LVMH. The French luxury empire behind brands like Louis Vuitton and Hennessy announced this week that people are spending less on its haute handbags, and customers are cutting down on its upscale cognac and champagne. This decline in lavish spending has taken a toll on LVMH’s performance in the market, reflecting broader economic trends.<\/strong><\/p>\n

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LVMH’s stock dropped over 4% on the London Stock Exchange after the company reported a sales slowdown. The downturn was particularly severe in Asia (excluding Japan), where sales fell 14% last quarter compared with Q2 of 2023. Japan stood out as a bright spot, with sales growth attributed to a weaker yen, which attracted Chinese tourists seeking bargains at LVMH boutiques. However, overall operating profit dropped 8% in the first half of the year compared to the same period in 2023, signaling significant challenges for the conglomerate.<\/p>\n

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The company’s more modestly priced products performed worse than its upscale items, indicating that economic difficulties are hitting the middle class the hardest. This retreat from prestige purchases marks the end of the conspicuous consumption boom of 2022 and 2023 that had buoyed the luxury industry. Competitors such as Burberry and Gucci are also feeling the strain as the market for high-end goods contracts. Despite these challenges, LVMH’s brands continue to wield considerable cultural power, ensuring their visibility in major global events.<\/p>\n

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In an effort to maintain its cultural prominence, LVMH has invested over $160 million to become a major sponsor of the Paris Olympics. The Olympic torch has been transported in a Louis Vuitton trunk, athletes will receive medals designed by the jeweler Chaumet, and the French team will don uniforms designed by Berluti in collaboration with fashion guru Carine Roitfeld. Additionally, LVMH is in talks with Formula 1 to have its luxury watch brand Tag Heuer replace Rolex as the timekeeping sponsor of the world\u2019s most popular motorsport, potentially securing a significant publicity win.<\/p>\n

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B\u00e9n\u00e9dicte Lin \u2013 Brussels, Paris, London, Seoul, Bangkok, Tokyo, New York, Taipei, Hong Kong<\/figcaption><\/figure>\n

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#LVMH #LuxuryIndustry #EconomicTrends #SalesDecline #LuxurySpending #LouisVuitton #Hennessy #ParisOlympics #FashionIndustry #GlobalMarket #TagHeuer #Formula1<\/p>\n","protected":false},"excerpt":{"rendered":"

Reading Time : <\/span> 2<\/span> minutes<\/span><\/span>LVMH, the French luxury conglomerate behind Louis Vuitton and Hennessy, is experiencing a decline as consumers cut back on lavish spending. The company reported a significant drop in sales, particularly in Asia, leading to an over 4% drop in its stock. Operating profit fell 8% in the first half of the year, highlighting economic challenges. Despite this, LVMH remains culturally influential, investing heavily in the Paris Olympics and exploring new sponsorships to maintain its visibility and prestige.<\/p>\n","protected":false},"author":2,"featured_media":5629,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[26,30,9,194,67],"tags":[196,19,83,10,165,4,93,70,94],"class_list":["post-5628","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-branding","category-entreprise-strategy","category-fashion","category-finance","category-wealthytalks","tag-196","tag-benedicte","tag-famous-people","tag-fashion","tag-finance","tag-gout-design","tag-investments","tag-luxury","tag-money"],"_links":{"self":[{"href":"https:\/\/goutanddesign.com\/wpress\/wp-json\/wp\/v2\/posts\/5628","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/goutanddesign.com\/wpress\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/goutanddesign.com\/wpress\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/goutanddesign.com\/wpress\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/goutanddesign.com\/wpress\/wp-json\/wp\/v2\/comments?post=5628"}],"version-history":[{"count":1,"href":"https:\/\/goutanddesign.com\/wpress\/wp-json\/wp\/v2\/posts\/5628\/revisions"}],"predecessor-version":[{"id":5633,"href":"https:\/\/goutanddesign.com\/wpress\/wp-json\/wp\/v2\/posts\/5628\/revisions\/5633"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/goutanddesign.com\/wpress\/wp-json\/wp\/v2\/media\/5629"}],"wp:attachment":[{"href":"https:\/\/goutanddesign.com\/wpress\/wp-json\/wp\/v2\/media?parent=5628"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goutanddesign.com\/wpress\/wp-json\/wp\/v2\/categories?post=5628"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goutanddesign.com\/wpress\/wp-json\/wp\/v2\/tags?post=5628"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}