LV can't sell anymore?

On the late night of the 10th Beijing time, LVMH, the world's largest luxury goods conglomerate, released its third quarter performance report. The financial report shows that in the third quarter of this year, the group's operating revenue was 19.96 billion euros, a year-on-year increase of 9%, which is lower than the previous analyst's expectation of 21.14 billion euros.

It is worth noting that this is the first time this year that LVMH's revenue has fallen short of expectations. Compared to the 17% revenue growth in the first and second quarters, the growth rate in the third quarter almost halved.

The growth rate has generally slowed down

From the perspective of various business lines, both the most well-known luggage and watch&jewelry businesses that have placed heavy bets in the past two years have seen a slowdown in growth compared to the same period last year.

Among them, LVMH's wine and spirits business saw a year-on-year decrease of 7% in revenue in the first three quarters, making it the only category to experience a decline. And in the same period last year, this category achieved a 14% positive growth.

Although the luggage business increased by 16% year-on-year, there is still a significant decline compared to 24% in the same period last year; The growth rate of the watch and jewelry business has even fallen to single digits -9%, compared to a growth rate of 16% in the same period last year.

It is worth noting that LVMH's boutique retail business achieved a growth of 26% in the first three quarters, and is also the only business whose performance growth rate has not declined.

It is understood that LVMH's boutique retail business mainly involves two major areas: customized retail (travel retail) for international travel customers, such as DFS and Miami Cruiseline; Boutique retail represented by Sephora, the world's most innovative beauty retail brand, and the unique Paris department store Le Bon March é River Gauche.

LVMH stated in its financial report that Sephora has performed well and is continuously expanding its market share, benefiting from strong purchasing power in North America, Europe, and the Middle East; With the gradual recovery of international travel, especially the return of Hong Kong and Macau, DFS's revenue has rebounded strongly.

Sales in the Asian region plummeted in the third quarter

From the perspective of sales regions, except for the US market, which had already experienced negative growth in luxury goods sales in the second quarter, Japan barely maintained its growth rate. However, Asia (excluding Japan) and Europe both experienced significant growth jumps in the third quarter.

The highly anticipated Asian region, after experiencing a significant rebound in the first half of the year, experienced a decline in enthusiasm in the third quarter, with a year-on-year growth of only 11%. The revenue of LV's headquarters in Europe has gradually declined, and the growth rate in the third quarter even dropped to single digit 7%.

After the financial report was released, LVMH's US stock market plunged during the trading session. Prior to the release of the financial report, it hit a daily high and rose 3.2% within the day. However, after the financial report was released, it quickly gave up its gains and turned down, closing down about 1.7%. The cumulative decline in the past six months has expanded to nearly 19%.

With its stock price falling, LVMH has given up the throne of Europe's most valuable listed company to weight loss drug leader Novo Nordisk.