Slowdown: Fendi’s spring collection
The luxury goods industry is braced for trouble as a slowdown in demand from China hits sales.
LVMH will be the first major player to shed light on business when it updates investors next week.
The French multinational giant is seen as a bellwether for the industry because it owns so many brands, from Louis Vuitton and Fendi to Tiffany and Moet and Chandon.
There will also be updates from Gucci owner Kering, Prada and Hermes the following week. British label Burberry and Richemont will report in May.
LVMH will post numbers on Tuesday. Sales for the first three months of the year are expected to be flat, according to investment bank JP Morgan. Demand from Chinese consumers will be ‘the biggest swing factor’, according to analysts at the Bank of America.
The world’s second-largest economy has been hit by a debt crisis in its property sector.
British stores may have suffered from an especially bruising decline in Chinese shoppers, according to retail expert Jonathan De Mello.
He said: ‘Key customers have been a bit turned off by a lack of VAT-free shopping and there are also issues with getting into the UK now as specific visas are required.’
