Louis Vuitton sales up as China’s demand for luxury goods shows no sign of slowing despite investor’s fears
The owner of Louis Vuitton said the bounceback in luxury had continued into the autumn despite fears of a slowdown in China.
In August, China’s president Xi called for a ‘common prosperity’ and wealth distribution, prompting investors to worry the country could impose measures to curb high-end consumption.
The warning ended a long run of share-price growth in the luxury sector, sending shares in LVMH down 8 per cent, Gucci-owner Kering down 15 per cent and Hermes down 8 per cent in two months.
The owner of Louis Vuitton (where actress Emma Stone – pictured – is a brand ambassador) said demand for its luxury goods from China has remained high
But LVMH, which also owns Moet & Chandon and Bulgari watches and is headed by billionaire Bernard Arnault, said there was little change in consumer behaviour in China in the three months to September.
Finance chief Jean-Jacques Guiony said: ‘We don’t see any reason that this could be detrimental to the upper middle class that is the bulk of our customer base.’
Shares in LVMH rose 3.2 per cent, or €20, to €653.90 yesterday. Strong demand for star labels Dior and Louis Vuitton ) helped sales of fashion and leather goods to rise 24 per cent year-on-year.
The reopening of restaurants and tourism boosted performance in Europe and the US.