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Four analysts cut LVMH price targets as China slump wipes 40% off luxury giant's market value

The Louis Vuitton store on London's Bond Street, as owner LVMH reports Asia sales fell 5% year-on-year while Europe's top luxury groups have shed around €330 billion in combined market value since January.
The Louis Vuitton store on London's Bond Street, as owner LVMH reports Asia sales fell 5% year-on-year while Europe's top luxury groups have shed around €330 billion in combined market value since January.

LVMH's fashion and leather goods arm recorded a 5% organic sales decline in the third quarter, badly missing analysts' expectations of a 1.8% drop, as Chinese consumer sentiment deteriorated sharply and hammered demand for Louis Vuitton and Dior. Chief Financial Officer Cecile Cabanis warned there are "not a lot of shortcuts" to recovery, as Europe's luxury sector has lost roughly €330 billion in market capitalisation this year. The weak results pulled the broader sector lower, with Hermes, Kering and Richemont all declining alongside LVMH shares.

Louis Vuitton is also contending with a Chinese consumer boycott after it sued tea chain Molly Tea over a logo that resembles its signature monogram, triggering a backlash on social media.

The $350 billion luxury industry is entering its third consecutive year of slowdown, with China's tax crackdown on wealthy individuals compounding already fragile consumer confidence.

JPMorgan cautioned clients that the Chinese market has taken a 'bigger than feared' step down, suggesting rivals are likely to report equally bleak quarterly figures.

MoreAOL News UKLVMH sales miss growth forecasts as China luxury demand slowsThe TimesLVMH hopes of recovery in China dashed by falling fashion salesLuxury TribuneLVMH: Fashion and Leather Goods Sales Fall in the Third Quarter of 2026 - Luxury TribuneReutersMarket turns cold on luxury after LVMH's China letdown
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