LVMH Earnings Suggest Luxury Spending Is Suddenly Slowing in the U.S.

July 26, 2023

Luxury goods giant LVMH reported a surprising 1% drop in U.S. sales during the second quarter, indicating a potential slowdown in luxury spending in the country. The company’s CFO, Jean-Jacques Guiony, attributed the decline to aspirational customers no longer spending on entry-level products, potentially due to the fading stimulus payments after COVID. The hardest-hit segment in the U.S. was wine and spirits, especially cognac, while LVMH’s sales in Europe saw an 18% increase, driven in part by tourists who accounted for nearly half of the growth. On the other hand, luxury spending in China remains strong despite signs of a broader economic slowdown.

Recent News

Bass Pro Shops CEO Focuses on Affordability Amid Inflation

In response to the persistent inflation affecting the economy, Johnny Morris, the founder and CEO of Bass Pro Shops, has reaffirmed the brand’s commitment to affordability. With inflation currently at 3.4%, above the Federal Reserve’s 2% target, Morris acknowledged the reality of rising costs and emphasized that the hunting, fishing, and outdoor sporting brand will maintain its focus on delivering value to its customers.