LVMH, the world’s largest luxury goods conglomerate, reported a 1% rise in organic sales in the second quarter, falling short of analyst expectations. This slower-than-anticipated growth adds to concerns about a potential slowdown in the luxury sector, particularly in China, a key market for designer fashion.
The French group, which owns brands like Louis Vuitton, Tiffany & Co., and Hennessy, saw its sales reach €20.98 billion ($22.8 billion), but this was below the projected €21.6 billion.
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The fashion and leather goods division, contributing nearly half of LVMH’s sales and the majority of its operating profit, also experienced a slight deceleration in growth, rising by 1% compared to the previous quarter’s 2% increase.
Despite the sluggish growth, LVMH remains optimistic about the second half of the year, stating its vigilance in the current environment.