Rising inflation, global uncertainty and falling demand for premium drinks are said to be behind LVMH's slowing growth.
The group, whose brands include Stella McCartney, Tag Heuer watches and Bulgari and Tiffany jewellers, reported sales of €20bn in the third quarter – up 9% compared with 17% in the previous quarter.
One of the factors that affected LVMH's business was wine and spirits, including Hennessy cognac, which fell 14% in the third quarter.
The results, released on Thursday, show that the post-pandemic luxury boom that helped LVMH become the first European company to reach a $500 billion valuation earlier this year is starting to wane.
Pauline Brown, former president of LVMH North America, said growing global uncertainty was a factor in slowing growth.
“If I were still on the board of LVMH or any other luxury company, what would really worry me is the geopolitical instability around the world,” she said.
“Buying luxury goods is a psychological purchase,” the former leader added. “Nobody needs a glass of champagne, nobody needs a watch or a diamond necklace… To buy it for yourself or as a gift, you really have to be in the right mood. When we see atrocities happening… the desire to spend on things that might be considered frivolous is reduced.”
Referring to the decline in wine and spirits, she said: “About half of that business is one brand, Hennessy. There are almost 30 brands in wine and spirits. The other half is mostly champagne, which actually grew less strongly, about 3% in the quarter. I think cognac has been hit hard in markets like China and North America because consumers there are not as willing to spend as high net worth individuals.”
LVMH is the first major global luxury company to report earnings for the quarter, with Hermès and Kering scheduled to report on Oct. 24.
LVMH CEO Bernard Arnault is the world's second-richest person. He took the top spot last December, but passed it to billionaire Elon Musk earlier this year.
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