LVMUY LVMH Moet Hennessy Louis Vuitton SA (PK)

By Giulia Petroni

LVMH's shares tumbled on Wednesday after the luxury giant reported slower sales growth in the third quarter as inflation and high interest rates squeeze consumer spending, casting a shadow on the sector.

At 0752 GMT, shares traded 5.9% lower at EUR690.10.

The French company reported quarterly organic growth of 9% on year, down sequentially from 17% in the second quarter and below analysts' expectations of around 11%.

The result is largely due to moderating growth in Europe and in most countries in the Asia Pacific region, while the U.S. and Japan showed broadly stable sequential trends.

"This exceptional momentum was never going to last forever, and a 'normalization' was expected," Berenberg's Graham Renwick and Luis Garcia say in a note. "Near-term uncertainty remains on when sales and margin trends will stabilize, and the key debate now is what a 'new normal' looks like for 2024 and beyond."

Write to Giulia Petroni at giulia.petroni@wsj.com

(END) Dow Jones Newswires

October 11, 2023 04:20 ET (08:20 GMT)

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