LVMH Admits That China'S Stock Market Crash Has Hurt LV.

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Group LVMH released its third quarter performance report on 2015, and then held a telephone conference on Tuesday to explain the details of the financial report on 2015.

At the meeting, LVMH pointed out that the collapse of China's stock market this summer has had a negative impact on the third quarter sales growth of the group, especially the flagship brand Louis Vuitton.

The fashion and leather Department of Louis Vuitton is the largest sales revenue and profit contributor of LVMH. The second quarter sales grew by 10%. This figure has once been optimistic that the flagship brand Louis Vuitton of the Department has entered a rising period.

However, the organic growth of the third quarter sales has slowed down by only 3%.

Stimulated by this bad news, LVMH's stock price fell 3% on Tuesday.

Chinese consumers are the world's largest consumers of luxury goods. Because of the factors such as luxury prices, they are increasingly choosing to go shopping overseas.

LVMH chief financial officer Jean-Jacques Guiony pointed out that from the current situation:

Chinese consumers spend more slowly on foreign purchases than domestic ones.

In the second half of the year, the growth rate of consumer spending in China was slower than that in the first half of the year. Although more Chinese tourists went shopping overseas, they spent less than before.

LVMH is the first luxury magnate to admit that China's stock market has had a negative impact on Group sales. The Group expects this negative effect to last for only a few months.

According to the Reuters last month

A survey showed that the stock market crash did not affect their sales revenue.

The other two departments.

Marc Jacobs and DKNY are undergoing a radical restructuring. Guiony is expected to take a few seasons to pick up.

By contrast, the wine and spirits sector rebounded strongly in the third quarter, especially in the US market, and the same store sales grew 23% in the third quarter.

Guiony pointed out at the meeting that there was no sign of slowing growth in Cognac sales in the US market. He said: "we have reason to believe optimistically that the rest of the year will be better than the first half."