The French luxury group LVMH recorded a revenue of 19.08 billion euros in the third quarter, missing market estimates of 19.94 billion euros. Under the leadership of billionaire Bernard Arnault, revenue declined organically by 3 percent year-over-year, compared to the expected 0.9 percent growth.

The core segment of fashion and leather goods, including renowned brands like Louis Vuitton and Dior, generated a revenue of 9.15 billion euros. This is significantly below the projected 9.67 billion euros and highlights the challenges faced by the sector.

The main reason for the decline in sales is the weaker growth in Japan, where a stronger yen significantly dampened the demand for luxury goods. While Japan was considered a growth market for LVMH in the last reporting season, the exchange rate changes and resulting price increase contributed to the slowdown.

Global trends show a declining demand for luxury goods, with demand in traditional markets like China and Europe decreasing. Last year, LVMH still benefited from Chinese consumers' willingness to take advantage of cheaper prices abroad. This dynamic has now reversed as the purchasing power is limited by a stronger yen.

Analysts from JP Morgan also see further challenges: Price increases of luxury brands in Japan could limit the previous growth momentum. “The combination of increased prices and a stronger yen is expected to further dampen demand in Japan,” said Timo Emden of Emden Research.

Despite the disappointing quarterly figures, LVMH remains a significant player in the global luxury market. The company's ability to adapt to changing market conditions and identify new growth opportunities will be crucial for future development.