Slowdown: Fendi’s spring collection
The luxury goods industry is bracing for trouble as a slowdown in demand from China hits sales.
LVMH will be the first major player to shed light on the deals when it reports to investors next week.
The French multinational giant is seen as an industry bellwether because it owns many brands, from Louis Vuitton and Fendi to Tiffany, Moët and Chandon.
There will also be updates from the owner of Gucci, Kering, Prada and Hermes the following week. The British brand Burberry and Richemont will present their report in May.
LVMH will publish the figures on Tuesday. Sales during the first three months of the year are expected to remain stable, according to investment bank JP Morgan. Chinese consumer demand will be “the biggest deciding factor,” according to Bank of America analysts.
The world’s second-largest economy has been hit by a debt crisis in its real estate sector.
British stores may have suffered a particularly sharp drop in the number of Chinese shoppers, according to retail expert Jonathan De Mello.
He said: “Key customers have been a little put off by the lack of VAT free shopping and there are now also problems entering the UK as specific visas are required.”