The best indicator that China growth is slowing

[IamTiong]

Paris - Shares in the French luxury goods group LVMH, which owns brands such as Louis Vuitton, Givenchy and Guerlain, dropped by nearly four per cent on Tuesday after posting quarterly results that disappointed investors.

At 0935 GMT shares in the global number one luxury group had fallen 3.3 per cent to 126.95 euros in a Paris market off 0.52 per cent.

On Monday LVMH posted first-quarter sales of 6.95 billion euros (S$11 billion, US$9.08 billion), a rise of 6.0 per cent from the previous three-month period that underscored weaker growth in the sector.

The result was slightly better than an average analyst forecast compiled by Dow Jones Newswires, which had anticipated an increase of 5.2 per cent to 6.92 billion euros.

However the slowdown in its main product lines, fashion and leather goods, to 0.4 per cent growth in sales to 2.38 billion euros, unnerved investors.

Organic growth, not including new stores or acquisitions, slowed to 7 per cent, down from 8 per cent in the previous quarter and 9 per cent for 2012 as a whole.

The luxury goods sector is concerned that a slowdown in China will hurt business that has been boosted by consumption in the world's second biggest economy.

 

[Lordshiva]

Paris - Shares in the French luxury goods group LVMH, which owns brands such as Louis Vuitton, Givenchy and Guerlain, dropped by nearly four per cent on Tuesday after posting quarterly results that disappointed investors.

At 0935 GMT shares in the global number one luxury group had fallen 3.3 per cent to 126.95 euros in a Paris market off 0.52 per cent.

On Monday LVMH posted first-quarter sales of 6.95 billion euros (S$11 billion, US$9.08 billion), a rise of 6.0 per cent from the previous three-month period that underscored weaker growth in the sector.

The result was slightly better than an average analyst forecast compiled by Dow Jones Newswires, which had anticipated an increase of 5.2 per cent to 6.92 billion euros.

However the slowdown in its main product lines, fashion and leather goods, to 0.4 per cent growth in sales to 2.38 billion euros, unnerved investors.

Organic growth, not including new stores or acquisitions, slowed to 7 per cent, down from 8 per cent in the previous quarter and 9 per cent for 2012 as a whole.

The luxury goods sector is concerned that a slowdown in China will hurt business that has been boosted by consumption in the world's second biggest economy.

why do we even worry?


only more of the dirty money will continue to fly to this fucking country mah....crime has no recession wan dudes!!!!


more good years for this fucked up country!!

 

[Equalisation]

It is really not very surprising since their quantum leap of nearly a decade.:o

 

[syed putra]

Previously, contractors will give officials expensive gifts during chinese new year. But that beaviour was curtailed by the new Premier. Even expensive china mad rice wine (ma Tai) also suffering for their premium range.

 

[johnny333]

When Spore was a developing economy it also had a growth spurt in the early years.

However now it's .......

 

[no_faith]

no worries, their pussies will come here and bring money home to spur their economic.
almost every PRC pussy have a LV 包包.

 

[Travellor]

no worries, their pussies will come here and bring money home to spur their economic.
almost every PRC pussy have a LV 包包.

yeah....all bought from luohu shopping centre at shenzhen>

 

[singham]

bro, you beri familiar with china...i like...

yeah....all bought from luohu shopping centre at shenzhen>

 

[no_faith]

yeah....all bought from luohu shopping centre at shenzhen>

with the local PRC pussies grabbers, no need visit Luohu buy A goods.