Professor Glenn A. Okun
Luxury goods makers’ quarterly results are a window into the health of the affluent consumer. LVMH, the owner of brands including Louis Vuitton, Dior and Tiffany, was the first to report yesterday (10/10). It is not a good sign for the economy.
LVMH’s sales growth fell to 9% in the third quarter. The company cited headwinds from rising inflation and economic turbulence for its single digit revenue growth.
Growth rates have reverted to their mean as a result of slowing demand for luxury goods in the U.S. and Europe. LVMH’s stock price has declined twenty percent over the last six months, foreshadowing the current results.
Late October will provide us with additional indications when Hermes and Kering report.
Stay tuned. More to come…
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