Luxury consumer spending slows down.

In the third quarter, sales for Louis Vuitton and Dior slowed down, while Gucci and Yves Saint-Laurent even saw declines.

Considered a barometer of the luxury industry, LVMH Group, which owns brands such as Louis Vuitton, Dior, and Tiffany, has not seen the same strong business performance in the past three months as it did in the first half of the year.

Specifically, newly released third-quarter revenue reached €19.96 billion, a 9% increase compared to the same period in 2022. This figure is significantly lower than the 17% growth in the first half of this year. Sales of LVMH's core products such as leather goods and luxury fashion were no exception, increasing by only 9% in the last quarter compared to 20% in the first six months.

Other companies struggled even more, with the French Kering Group seeing sales fall 9% in the third quarter to €4.46 billion. CEO François-Henri Pinault explained the reasons included the impact of decisions aimed at strengthening the exclusivity of the group's brands, as well as external challenges including an unfavorable macroeconomic environment and reduced demand for luxury goods.

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A Gucci store in Berlin, Germany, on January 22, 2021. Photo: Reuters

Gucci, the brand that accounts for half of Kering's global business, saw its revenue decline by 7% in the third quarter. Because Gucci is one of Kering's most profitable brands, this poor performance impacted Kering's overall operating profit. Another subsidiary, Yves Saint-Laurent, is also showing signs of weakness, with sales down 12%.

Financial analysts in the luxury goods industry are concerned about the purchasing power of the Chinese market, which had been a source of huge profits for Gucci, Dior, and Louis Vuitton until 2020. After lockdowns were lifted earlier this year, the recovery has been slow. "The Chinese watch market has recovered more slowly than expected," said Sylvain Dolla, CEO of Swatch Group, the owner of the Tissot watch brand.

Hermès, in particular, remains stable. In the third quarter, the French leather goods brand announced a 15.6% increase in sales year-on-year, following a 25% increase in the first half of the year. Chief Financial Officer Eric du Halgouët stated that business in China, Macau, Taiwan, and Hong Kong is "strong." However, Hermès acknowledged that China still faces short-term macroeconomic challenges.

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"The long-term and medium-term growth potential remains strong," Du Halgouët added. This prediction has encouraged Hermès to continue investing in opening one or two stores each year. They are preparing to open a store in Chengdu, primarily to sell handbags to those who have not yet traveled to Europe.

Phiên An ( according to Le Monde )

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