The party could be over at LVMH as shoppers cut back on spending on its designer bags and clothes, brokers warned.
Subdued demand and an economic slowdown in China means a post-pandemic boom in sales at the luxury fashion giant has come to an end, analysts at investment bank Morgan Stanley said.
Customers have less cash to splash on high-end goods due to high inflation and soaring interest rates.
The French owner of Louis Vuitton, Dior and Fendi, and its competitors are facing an ‘industry-wide deterioration in demand’, the brokers said.
Related Articles
HOW THIS IS MONEY CAN HELP
The bank also questioned if its appointment of rap star Pharrell Williams as men’s creative director was paying off.
Some links in this article may be affiliate links. If you click on them we may earn a small commission. That helps us fund This Is Money, and keep it free to use. We do not write articles to promote products. We do not allow any commercial relationship to affect our editorial independence.
Credit: Source link