Louis Vuitton faces sales decline amid weakening Chinese demand

Louis Vuitton has reported third-quarter sales in line with group forecasts, but the performance of its fashion and leather goods division has been disappointing. The division saw a 5% organic decline, driven largely by weakening demand in China, despite resilience in the United States and modest improvements in Europe.

Market analysts note that Louis Vuitton's stock has corrected by 22% over the last three months. This decline is attributed to a contraction in multiples caused by an outflow of discretionary consumer spending and a lack of visibility regarding a recovery in the Chinese luxury market. Additionally, logistics and transport disruptions involving a freight agent impacted organic growth by over one percentage point, with the most significant effect felt by customers in the United States.