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Investing.com -- Shares in LVMH Moët Hennessy Louis Vuitton SE (EPA:LVMH) slipped on Wednesday after sales at the world's largest luxury group narrowly beat expectations in the second quarter, which some investors interpreted as a sign that a post-pandemic boom in demand for high-end products is cooling.
The French company posted a 17% jump in sales in the three months to the end of June, only slightly topping estimates of 16%, according to a Visible Alpha consensus quoted by Reuters.
While performance in China was strong, sales in the U.S. declined by 1% as inflation-wary consumers chose to rein in spending on LVMH's pricier goods.
"The print has shown that the return of Chinese consumer is not fully offsetting the near-term slow-down elsewhere, which has spooked investors this earnings season," analysts at UBS said in a note to clients.
LVMH, which includes famous fashion brands like Dior and Louis Vuitton as well as cognac maker Hennessy, often serves as a bellwether for the larger luxury industry. As such, the only marginally better-than-anticipated top-line result weighed on shares of rivals Kering (EPA:PRTP) and Richemont (SIX:CFR).
Speaking to reporters, LVMH finance chief Jean-Jacques Guiony noted: "The global mood is not one of revenge buying like we saw in 2021 and 2022, so we're talking more about normalization than anything else."
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