Luxury giant LVMH has reported a 3% overall sales decline in Q3 2024, with its crucial fashion and leather goods division experiencing a 5% drop in organic revenue. This marks the first decline in this segment since the pandemic’s start, signaling a significant shift in the luxury market. LVMH’s CFO cited economic challenges, particularly in mainland China, where consumer confidence has plummeted. The Asia region, including China, saw a 16% decrease in organic sales, exceeding analysts’ expectations.

This downturn reflects broader trends in the luxury sector, with the once-booming Chinese market showing signs of fatigue. Recent Chinese government stimulus measures have yet to significantly impact luxury consumption. The results have affected stock prices across the luxury sector, with LVMH’s American depositary receipts falling up to 10%.