“This is obviously connected with what happened in China in July and August in the stock market,” CFO Jean-Jacques Guiony told investors. “We know perfectly well that when asset depreciation of such a magnitude takes place, this has an impact on our business, and China was no exception…the drop in the stock market has taken its toll.”
The company also reported overall sluggish sales growth in its key fashion division, but fared better in its wine and spirits business.
China’s broader economic slowdown and a government anti-corruption campaign has hit luxury spending in recent years. While LVMH held strong for some time, it turns out that even the world’s largest luxury company isn’t immune to troubles in China.
Find out more at CNN Money.
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