LVMH

Q3 sales came in down 4.5% (3% organic) at €19.1bn, 4.9% below consensus and 10% below our expectations.

The group mentions decline in China (-16% in Asia excl Japan) and a softening demand in Japan (which is something new). The group sees a modest improvement in Europe (+2% ) and in the US (0%) as global consumption remains weak.

LVMH noted that it remains difficult to assess the impact of China’s stimulus measures on the consumption environment, with no clear visibility on whether further stimulus will be introduced. However, the announced measures suggest that Chinese authorities are committed to addressing the slowdown.

LVMH does not expect any significant positive or negative surprise from trade in China during the Chinese National Holiday and sees little evidence of a meaningful shift in the current trend.