Life less luxurious as LVMH sales slow

The group, which has a shop in the Victoria Quarter in Leeds, saw sales growth at the fashion and leather division slide to 3 per cent in the third quarter, against expectations of 7 to 8 per cent.

Chief financial officer Jean-Jacques Guiony blamed price increases in Japan for the slowdown, as well as softer demand for some brands.

However, one London analyst noted that Japan accounted for only around 15 per cent of LVMH’s fashion and leather sales, “so we did not get a full explanation”.

LVMH has been trying to stem a decline in Louis Vuitton’s sales growth by introducing new and pricier leather bags, which analysts expected would lead to short-term losses in sales.

“I understand that the repositioning of Louis Vuitton takes time and may be a bumpy ride,” said Exane BNP Paribas analyst Luca Solca.

Before the results were announced, LVMH shares were up 4.4 per cent since January, underperforming the overall luxury sector, which was up more than 20 per cent.

Analysts said concerns about the future growth of Louis Vuitton had been exacerbated by the announcement this month that it was parting company with its star designer, Marc Jacobs.

Mr Guiony said the recent launch of new leather collections had not come in time to have a meaningful impact on sales.