LVMH Results Puts Fear Across Luxury Goods Sector

PARIS, France The outlook for the luxury goods industry darkened on Friday as poor results from industry leader LVMH showed how the strong euro and political protests in Hong Kong were major factors curbing spending by Chinese and Russian customers.

Shares in LVMH, seen as setting the tone for the luxury goods industry, fell as much as 7.2 percent on Friday – the biggest one-day drop since 2009, dragging down companies in the sector such as Cartier-owner Richemont, down 3 percent and Gucci-owner Kering, which fell 3.7 percent.

LVMH’s trading update late on Thursday revealed a marked drop in business in Hong Kong, where pro-democracy protests have deterred Chinese visitors, as well as a drop in demand from elsewhere in China, and a much-worse-than-expected slump in Japan, boding ill for the sector.

Read full story at Business Of Fashion