The Reasons Behind The Zero Growth Of LVMH Leather Goods Department In The First Quarter

As the world's largest luxury group LVMH group, a bit of trouble can basically predict the future development trend of the luxury goods industry.

A few days ago, LVMH group released its first quarter earnings report.

Weak or even recession.

It is reported that in the first quarter of March 31, 2016, as one of the main growth engines of the group and contributed nearly 3/4 of the profits to the group, the income growth of the leather fashion department was lower than the market expected growth rate of 2% to 3%. Compared with the 4% decline recorded in the 2015 fiscal year's annual revenue growth, it was a horrible sight.

In the first quarter, the group's total revenue was only 3.57% to 8 billion 620 million euros.

In the first quarter of the group

China recorded only 3% growth, far less than half of the 2015 fiscal year.

This basically confirms the prediction of a consulting firm's continued low point of luxury market in 2016.

But for the above analysis, the "LVMH" of the leather market is now in a passive position, and I am afraid that the future of the luxury goods market is even more difficult.

The biggest reason for this is the slowdown in China's economy, which has been released for the first quarter.

Enterprises, whether H&M, UNIQLO, or Prada, LV and other audiences from the public to the high-end crowd, the market performance is weak.

The Middle East and the Russian market are affected by geopolitical influence, and the shadow of Europe's terrorist attacks continues to disperse.