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.
In the red: Founder and chief Bernard Arnault, with daughter Delphine
The French owner of Louis Vuitton, Dior and Fendi, and its competitors are facing an ‘industry-wide deterioration in demand’, the brokers said.
The bank also questioned if its appointment of rap star Pharrell Williams as men’s creative director was paying off.