LVMH Leather Sales Increased By Just 3%. The Global Luxury Market Is In A Panic.

Famous in Britain Luxury goods Group Burberry Boboli and Mulberry have issued a profit warning in the recent interim report, while the famous Bain research firm Bain & Company Bain consulting recently released a report that the luxury market only increased by 2% in 2014. Continuous news led to a panic in the luxury market and the decline in luxury stocks.

LVMH Mo t Hennessy Louis Vuitton SA (MC.PA) MOET & CHANDON Hennessy LV group released the first nine months of fiscal year 2014 on Tuesday, which deepened this panic, especially the weakening of the leather sector of LVMH group and the uncertainty of the Greater China economy and geopolitics. Nine months before September 30, 2014 LVMH The total income was 21 billion 397 million euros, an increase of 4% from 20 billion 622 million euros in the same period last year and an organic growth of 4%.

The increase from 7 billion 139 million euros to 7 billion 677 million euros in the same period last year is lower than that of Bloomberg analysts, which is also lower than that of the first half of the year. Compared with the first half of the year, the data showed that the growth of aircraft in the three quarter continued to slow down, while the wine and spirits sector continued to be affected by China's anti-corruption. The sales in the first nine months dropped to 7%, from the 2 billion 827 million euro in the same period last year to the euro, and the organic growth was also -3%. The watch and jewellery Department benefited from the sales growth of Bulgari Bvlgari, the growth rate of the previous month was increased to nine euros from the same period last year, and the organic growth rate reached the peak. LVMH group's leather goods sector continued to be weak. As of the first nine months of September 30, 2014, the organic growth of the Department with Louis Vuitton Louis Weedon and Fendi Fendi was only 3%, a real increase of 8%.

Luca Solca, a leading industry analyst and Exane BNP Paribas luxury analyst at Paris bank, said LVMH's performance report confirmed the current weak environment and released negative signals.

Tuesday, Bain & Company Bain consulting and Fondazione Altagamma Luxury goods in Italy The industry association released the latest report on Worldwide Luxury Markets Monitor (global luxury market monitoring) report. In 2014, the global personal luxury consumption will only grow by 5%, and it is expected to increase to 223 billion euros, or about 282 billion dollars, excluding the exchange rate factor. The growth rate is only 2%, the lowest since 2009. In 2013, the consumption of luxury goods increased by 7% year after year.

In addition to the negative signals released by the two largest British luxury brands on Wednesday, the latest performance report of Cie.Financiere Richemont SA (CFR.VX) Prada SpA (1913.HK) Prada released the same signal last month.