LMVH reported weak results as the luxury market continues to face challenges, with sales at its fashion and leather goods division decreased by five per cent in the third quarter, which was affected by weaker demand in China.
The segment that holds banners, including Louis Vuitton, Dior, Celine, and Fendi, reported sales of £7.1bn in the three months to September.
The overall group’s sales increased by one per cent on an organic basis to £16.1bn, which includes the brand’s other divisions.
According to the business, the weak performance in China was due to falling consumer sentiment as well as government policies affecting more high-earning customers.
Dior’s sales remained broadly unchanged year-on-year while Celine showed signs of improvement with double-digit sales growth in the US.
The business said in a statement: “Despite an economic and geopolitical environment that remains uncertain, the group remains confident and will maintain a strategy focused on continuously enhancing the desirability of its brands, drawing on the authenticity and quality of its products, its excellence in retail, and its agile organization.
“LVMH will draw on its powerful brands and the talent of its teams to reinforce its global leadership position in luxury goods once again in 2026.”
However, the demand for handbags and luxury fashion has struggled to recover, particularly in China, which has been one of the most key markets for the company.
The brand’s selective retailing division, which includes Sephora, has posted an eight per cent organic growth and continues to outperform the group’s fashion operations.
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