PARIS (Reuters) – LVMH fell in early trading on Wednesday after the publication of its third quarter results, which were considered disappointing, which revived fears about the slowdown in Chinese demand and weighed on all luxury stocks in Europe.
At 07:05 GMT, LVMH fell 6.6%, compared to a drop of 0.32% for the Stoxx 600 at the same time.
Kering lost 5.1%, Hermès 2.8%, while Richemont lost 2.4% and Burberry 2.2%. L’Oréal lost 4.1%.
The turnover of LVMH, the world’s leading luxury group, amounted to 19.08 billion euros for the three months ending in September, compared to 19.96 billion euros in the same period. last year, the first drop in the group’s quarterly sales since the start of the pandemic.
LVMH Chief Financial Officer Jean-Jacques Guiony said in a conference with analysts that consumer confidence in China had fallen back to the low levels seen during the pandemic.
“Investors in the sector have recently been debating the potential extent of the slowdown in Chinese consumption, and wondering whether a recovery in other geographies could offset the deterioration in China,” summarize JP Morgan analysts in a note.
“The LVMH figures were not reassuring and suggest that the downward trends are in fact stronger than expected,” they add.
(Written by Corentin Chappron, edited by Blandine Hénault)
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