Luxury awaits the mule in the United States of frying

Digest opened free editor

Rola Khaleda, FT editor, chooses her favorite stories in this weekly newsletter.

Some people follow trends. The real fashion designer expects them. Thus, unlawful profits of the luxurious giant and Belweether LVMH should cause discrimination between investors. The shares of Louis Vuitton shares 7 percent fell on Tuesday after sales of the first quarter. But its numbers are not yet reflected in a lot of softening in the American market.

The main problem today is China. The consumers there tightened their wallets, which have achieved sales in the country, and given the tendency of Chinese citizens to capture jewelry on their trips, in the wider region as well. LVMH revenues in Asia, with the exception of Japan, decreased by 11 percent in the first three months of 2025. Sales in Japan decreased by 1 percent – a sharp reflection compared to the growth of last year.

This is a bad news for the Chinese demand for about 30 percent of sales, according to UBS. It also turns some extent to explain a 5 % decrease in the LVMH Fashion and Leather Commodities section, which includes trademarks such as Dior. Wine sales and lives, less than total revenues, decreased by 9 percent, in a bad omen of their peers Diago, Bernod Ricard and Remy Quintro.

All this, though, is the news of last season. Anna Winner does not take to find out where the next direction comes from: the United States.

LVMH said that brands of fashion and leather goods have stood well despite fears of customs tariffs. The problem, though, is not to the extent that goods will become more expensive – luxury home customers can handle it. In any case, LVMH is already manufacturing 45 percent of the goods that it sells in the United States locally; There may be room to raise it.

The issue is that even the wealthy do not explode when their shares are disrupted. The opposite was evident at the end of last year: with Trump’s bump assessing assessments in the stock market, the other American shoppers came out in large numbers.

Some companies may overcome the depression coming from others. Jewelery proves, like a category, it is a relative founder, even inside LVMH, which may also lead to rival Richmont floating. As for truly, it is highly rich, it is raised from the wider distress. This helps to clarify the reason for exceeding the market value of LVMH this week through that of Hermès, although the latter is not made in the United States.

Although it relies on short -term tastes, luxury is also a long -term work. The market value of LVMH is still 3 times what it was a decade ago. The wealthy rarely goes out of elegance. Indeed, the founder and CEO Bernard Arnolt was a buyer of his company recently, which raised his family’s share to less than 50 percent. It is only financially, the next seasons in the industry can land with the gentle.

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