Oct 16, 2024 - Economy
Charted: Luxury slowdown
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Consumers in China opened fewer Hennessy bottles and dropped less cash on things like Dior bags last quarter.
Why it matters: Global brands are hurting as China's economy shows signs of deterioration.
Driving the news: Moët Hennessy Louis Vuitton, the parent company of Hennessy, Dior and dozens of other luxury brands, reported a 16% decline in its "Asia excluding Japan" segment, which makes up roughly 30% of its sales.
- "Chinese consumers are facing growing macroeconomic headwinds, which obviously impact their confidence and weighs on their discretionary spend," deputy CFO Cécile Cabanis said on a call with investors last night in Europe.
The big picture: LVMH's problems aren't concentrated in China. The company also reported just "gradual" improvement in sales from Western customers, which it pinned to high interest rates and inflation.
