LVMH(US:LVMUY) Xin Lang Cai Jing·2025-10-25 05:29Core Insights - The recent "clothing clash" between a LV coat priced at 16,000 yuan and a school uniform from Changjun High School highlights challenges faced by the LV brand in the Chinese market [2][3][8] - The LV coat is no longer available on the Chinese website and is sold out in most sizes on the overseas site, indicating a potential supply issue or declining demand [2][7] - The school uniform, referred to as "Panda uniform," is available for as low as 86 yuan, showing a stark contrast between luxury pricing and affordable options [2][7] Financial Performance - LVMH reported a 4% decline in total revenue to 39.81 billion euros for the first half of 2025, with a 15% drop in operating profit and a 22% decrease in net profit [8] - The fashion and leather goods segment, which includes LV, saw a 7% decline in organic revenue for the first half of the year, with a 9% drop in the second quarter [8] - The Asia region (excluding Japan) experienced a 9% decline in organic revenue for the first half of 2025, although there was a slight recovery with a 2% growth in the third quarter [8][9] Market Dynamics - The Chinese market, a significant area for LVMH, has shown a decline in consumer confidence, impacting luxury goods sales [9][10] - Cross-border shopping trends, influenced by factors like currency fluctuations, have diverted some consumer spending away from domestic markets [9] - LVMH is actively adjusting its strategies in China, including innovative marketing initiatives to stimulate consumer interest [10]