Louis Vuitton, LVMH Group’s luxury fashion and accessories brand, may have to close some of its stores in second-tier Chinese cities amid declining mainland sales.
Jean-Jacques Guiony, group chief financial officer, attributed the slowdown to the stock market rout in July and August, the Hong Kong Economic Journal reported.
Guiony said the number of mainland customers has not seen any increase since the beginning of the third quarter, compared with a double-digit growth in the first half of the year.
Excluding foreign exchange factors, the group’s sales grew 7 percent in the July-September period, compared with a 9 percent increase in the second quarter.
Sales in Asia ex-Japan markets declined 8 percent from a year ago, partly due to the difficult business environment in the duty-free shops in Hong Kong and Macau over the past few months.
Guiony, meanwhile, foresees more Chinese visitors going to Japan to shop for products under the group’s brands.
The group is considering closing some stores in second-tier Chinese cities, or shrinking their size.
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