LVMH’s fashion and leather goods business remained under pressure in the third quarter with revenue falling 2 percent, as the owner of Louis Vuitton and Dior struggles to pull its luxury brands out of a long-running decline.
Revenue at the fashion and leather goods business, which accounts for about half of the company’s total, fell 2 percent to €8.5 billion ($9.9 billion). A consensus estimate compiled by Bloomberg News had forecast a 3.5 percent drop. Overall, LVMH’s revenue advanced 1 percent in the third quarter.
The third-quarter drop at the fashion and leather goods business comes after a 9 percent fall in the second quarter and a 5 percent decline in the first quarter. The results offer some cheer for the rest of the industry. LVMH is one of the first luxury companies to report and is considered a benchmark both for its size and the breadth of brands in its portfolio.
“In an uncertain economic and geopolitical environment, 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, excellence in retail and agile organisation,” LVMH said in a statement.
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