LVMH has seen a 3% sales decline in its third quarter of 2024, a significant deterioration over growth of 1% in Q2 and 3% in Q1.
Financial analysts were expecting to see growth of 1% in the quarter, triggering a sell-off of the company’s stock that wiped 5% off its share value.
LVMH stock had seen a significant upturn at the end of September on hopes of a stimulus package from the Chinese government, but that rally has run out of steam and today’s results confirm the continuing challenges in Asia, excluding Japan, which accounts for 29% of sales for the world’s largest luxury group.
Today’s share price of €595 is down over 30% from a high of €873 in March this year.
That Asia region has seen a decline of 16% in Q3 and is down 12% for the first nine months of 2024.
Japan is up by 36% for the year to date; USA is up 1% and Europe is flat.
LVMH’s Watches & Jewelry business recorded a worldwide drop in sales of 4% in Q3.
The slow down has worsened from 3% up year-on-year in Q1 and 1% up in Q2 to 3% down in Q3.
Worldwide, Watches & Jewelry includes jewelers Tiffany & Co., Bulgari, Chaumet and Fred in addition to watch brands TAG Heuer, Hublot and Zenith.
Performance by brand is not broken down in LVMH’s financial reports, but there was positivity about the future of TAG Heuer, in particular, because of the global deal secured with Formula 1 racing.