LVMH Sales Fall as China Luxury Demand Downturn Continues

Financial Performance - LVMH's fashion and leather goods unit sales decreased by 9%, slightly worse than expected [1] - Wines and spirits unit performed slightly better than expected, but remained negative due to cognac's struggles in the US and China [3] - Watches and jewelry division, including Tiffany and Bulgari, remained flat [2] Market Trends and Dynamics - Concerns exist that LVMH's top brands are no longer delivering "best in class" performance compared to brands like Brunello Cucinelli, which experienced 10% growth [2] - Tourism spending is weaker, with Chinese tourists spending less in Japan and American tourists curbing spending in Europe due to a weaker dollar [4] - Champagne sales in the US are showing slight improvement, and overall local demand is relatively resilient [3] Strategic Considerations - Investors are paying more attention to the conglomerate discount as growth slows [5] - Fashion and leather goods, along with wines and spirits, are struggling simultaneously [6] - There is no current indication of spinning off assets like Sephora or other major restructuring, though some cleaning up may occur [6][7]