LVMH Earnings Suggest Luxury Spending Is Suddenly Slowing in the U.S.
July 26, 2023
Luxury goods giant LVMH reported a surprising 1% drop in U.S. sales during the second quarter, indicating a potential slowdown in luxury spending in the country. The company’s CFO, Jean-Jacques Guiony, attributed the decline to aspirational customers no longer spending on entry-level products, potentially due to the fading stimulus payments after COVID. The hardest-hit segment in the U.S. was wine and spirits, especially cognac, while LVMH’s sales in Europe saw an 18% increase, driven in part by tourists who accounted for nearly half of the growth. On the other hand, luxury spending in China remains strong despite signs of a broader economic slowdown.
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