LVMH Quarterly sales fell amid an “uncertain economic and geopolitical environment.”
This was reported by a major luxury goods retailer. 3rd quarter earnings Sales fell 3% to 19.1 billion euros, with sales in the core fashion and leather goods division, which includes brands such as Dior and Louis Vuitton, down 5%.
The group’s earnings and sales were both lower than analysts expected, the Financial Times (FT) reported.
“there were make a complete mistake” Bernstein analyst Luca Sorca told the FT. “We see LVMH as the weakest among luxury brands. We believe Richemont will do better and Hermès will be the best.”
The Paris-based company said the decline “resulted primarily from the slowdown in growth seen in Japan due to the strong yen.”
Chief Financial Officer Jean-Jacques Guiony told analysts that mainland China’s consumer confidence has declined as consumers cut back on spending amid a bleak economic outlook and weak housing market, the FT reported. He said the situation had fallen to the lowest level in the coronavirus era.
PYMNTS is luxury goods department Last week, we pointed to a series of alliances and acquisitions in this space as a key strategy in navigating an increasingly complex economic landscape.
This report was made following the Myteresa incident. acquisition YNAP was created from Richemont with the aim of creating the world’s leading digital luxury group.
“This move brings together Mytheresa and YNAP’s well-known brands such as Net-A-Porter and Mr. Porter, strengthening the luxury offering available to high-end consumers. “The aim is to combine the unique brand propositions and operational efficiencies of both companies while maintaining their unique brand identities,” PYMNTS wrote.
At the same time, the launch of Authentic Luxury Group (ALG) by Authentic Brands Group and Saks Global marks another significant collaboration. Retail analysts point out: collaboration It brings operational efficiencies, allowing luxury brands to streamline back-end functions and reach a wider audience.
By sharing resources and insights, companies like Mytheresa and Authentic Brands Group are poised to grow in a challenging market.
“Mytheresa’s acquisition of Yoox Net-a-Porter is a great example of how companies are partnering to drive operational efficiencies, expand operations, and extend their reach to multiple segments of luxury consumers. is.” Amanda RaiRetail Analyst and Consulting Director macmillan doolittlehe told PYMNTS.
“The combined entity will leverage multiple brands, including MyTheresa, Net-A-Porter, and Mr. Porter, while reducing costs by consolidating many of its back-end business functions such as legal, IT, and human resources. and are likely to achieve different heights” – the end consumer. ”
