LVMH, the world’s largest luxury group, has reported a 4% decline in Watches & Jewelry sales during its third quarter of 2024. This marks a significant drop from the previous quarters, where the company saw a 1% increase in Q2 and 3% in Q1. The unexpected downturn has triggered a 5% drop in LVMH’s share price, following analyst expectations of a modest 1% growth for the quarter.
Despite an initial boost in September due to speculation over potential economic stimulus in China, LVMH’s latest financial results underline ongoing challenges in Asia (excluding Japan). The region saw a dramatic 16% sales decline in Q3, contributing to a 12% year-to-date slump in 2024. In contrast, Japan has shown a strong performance, with sales up 36% for the year, while the U.S. saw a slight 1% increase, and Europe remained stable.
The Watches & Jewelry division, which houses brands like Tiffany & Co., Bulgari, Chaumet, Fred, and watchmakers TAG Heuer, Hublot, and Zenith, saw global sales drop 4% in Q3. This decline represents a worsening trend from earlier in the year when sales increased by 3% in Q1 and 1% in Q2. While specific brand performance details are not disclosed, LVMH remains optimistic about TAG Heuer’s future prospects, particularly after securing a high-profile global partnership with Formula 1 racing.
LVMH’s stock, which soared to €873 in March, has since experienced a decline, now priced at €595—a drop of over 30%. The company is facing pressure to address the ongoing market challenges, particularly in Asia, as it looks to recover and stabilize its luxury portfolio.
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