LVMH Drops Most in Year as Results Stoke US Worries
Comment of the Day

July 26 2023

Commentary by Eoin Treacy

LVMH Drops Most in Year as Results Stoke US Worries

This article from Bloomberg may be of interest to subscribers. Here is a section:

Mixed set of results with the stronger-than-expected recovery in China offsetting the decline in cognac, mainly in the US

“Demand for entry-price leather goods, jewelry and cognac from US aspirational customers will not recover immediately and visibility for the rest of the year remains low,” notably due to an uncertain macro-economic environment in China.

Eoin Treacy's view

Luxury goods were one of the primary avenues for betting on the strength of China’s reopening. A narrowing of breadth within the sector is a sign of declining global appetite for high priced aspirational goods. Declining demand for the less desirable brands spreading to the first tier is a sign of caution among consumers and is now also evident in luxury watches. Second-hand Rolex prices are now also falling.

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