A $245 Billion Selloff Signals Less Sparkly Future for Luxury Stocks

13-10-23

The wealthy shoppers who fuelled LVMH’s rise to Europe’s most valuable company and made its founder the world’s richest man are showing signs of fatigue.

Disappointing sales figures from the owner of Louis Vuitton and Christian Dior sent a shudder through a luxury industry that had grown accustomed to stellar growth at the world’s biggest purveyor of high-end consumer goods.

LVMH Moet Hennessy Louis Vuitton SE suffered its biggest intraday share decline in almost two years on Wednesday, falling as much as 8.5 percent and briefly wiping out its once-hefty gains for the year. Smaller rivals such as Richemont, Gucci owner Kering SA and Hermes International were dragged down with it.