LVMH’s, sales increased by 1% in the third quarter, driven by improved demand in China, offering some solace to a luxury goods sector grappling with a prolonged slump.
The rise reported by LVMH represents the first quarter of growth this year for the world’s largest luxury goods group, which is seen as a sector bellwether with operations spanning fashion, alcohol and retail.
LVMH said in a statement that trends in Asia excluding Japan, a market dominated by China, showed “noticeable” improvement nine months into the business year.
LVMH Chief Financial Officer Cecile Cabanis cautioned that LVMH faces headwinds in the fourth quarter, including unfavorable currency rates and ongoing economic uncertainty, but said the group was confident with the new creative direction its brands are taking. Sustained financial improvement will “take time” with “gradual sequential improvement”, added Cabanis.
