Luxury shoppers in the United States are curtailing purchases of high-end fashion and leather goods, LVMH's first-quarter sales report showed, adding to evidence that a strong, months-long, post-pandemic splurge may be ending.
LVMH saw a particular slowdown in U.S. demand for its Hennessy cognac, as a steep price increase, meant to offset rising energy and glass costs, were "probably a bit difficult to absorb by some clients", Guiony said.
LVMH will also soon show off a hefty investment in U.S. jewellery group Tiffany, which it bought for $16 billion in 2021, with the reopening of the New York flagship store after three years of renovation. Elliott Savage, portfolio manager of U.S.-based fund YCG Investments, which holds shares in LVMH and other luxury brands, said a weakening U.S. luxury market in the near term could present an opportunity for dominant players to take market share.
LVMH's luxury divisions, which span fashion, leather goods, watches and jewellery, have been gaining on rivals in recent years, almost doubling their global market share to 22% from 12% between 2018-2023, according to Jefferies.
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