Friday, November 8, 2024

LVMH Watches & Jewelry Sales Drop 4% In Q3 As Asia Struggles

LVMH, the world’s largest luxury group, has reported a 4% decline in Watches & Jewelry sales during its third quarter of 2024. This marks a significant drop from the previous quarters, where the company saw a 1% increase in Q2 and 3% in Q1. The unexpected downturn has triggered a 5% drop in LVMH’s share price, following analyst expectations of a modest 1% growth for the quarter.

Despite an initial boost in September due to speculation over potential economic stimulus in China, LVMH’s latest financial results underline ongoing challenges in Asia (excluding Japan). The region saw a dramatic 16% sales decline in Q3, contributing to a 12% year-to-date slump in 2024. In contrast, Japan has shown a strong performance, with sales up 36% for the year, while the U.S. saw a slight 1% increase, and Europe remained stable.

The Watches & Jewelry division, which houses brands like Tiffany & Co., Bulgari, Chaumet, Fred, and watchmakers TAG Heuer, Hublot, and Zenith, saw global sales drop 4% in Q3. This decline represents a worsening trend from earlier in the year when sales increased by 3% in Q1 and 1% in Q2. While specific brand performance details are not disclosed, LVMH remains optimistic about TAG Heuer’s future prospects, particularly after securing a high-profile global partnership with Formula 1 racing.

LVMH’s stock, which soared to €873 in March, has since experienced a decline, now priced at €595—a drop of over 30%. The company is facing pressure to address the ongoing market challenges, particularly in Asia, as it looks to recover and stabilize its luxury portfolio.

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Alice
Alice
Alice is a seasoned jewelry designer renowned for her exquisite creations that seamlessly blend artistry with elegance. With a passion for craftsmanship and an unwavering commitment to quality, Alice has established herself as a distinguished figure in the world of fine jewelry. Drawing inspiration from diverse cultures and artistic movements, Alice brings a unique perspective to her designs, creating pieces that transcend mere accessories to become timeless works of art. Her meticulous attention to detail and insistence on using only the finest materials ensure that each creation reflects not only her artistic vision but also a commitment to unparalleled craftsmanship. Having honed her skills through years of dedicated practice and a keen understanding of evolving trends, Alice is adept at translating her clients' desires into bespoke, one-of-a-kind pieces. Her portfolio encompasses a range of styles, from classic and timeless to avant-garde and contemporary, showcasing her versatility and ability to cater to a diverse clientele.

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