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LVMH: weighing the cost of coronavirus

A queue of people outside a Louis Vuitton store in China

Recent easing of geopolitical tensions in a crucial region for LVMH and its luxury goods peers has now been overshadowed by the threat of the coronavirus. Here we assess the potential impact on the luxury goods giant.


The costs of the US/China trade war and Hong Kong tensions of 2019 have been counted at luxury goods giant LVMH Moet Hennessey Louis Vuitton (EPA: MC). Revenue growth in Asia slowed across three of the group’s four major divisions compared to 2018, most notably the large fashion and leather goods business, as violence in Hong Kong deterred high-end shoppers. Final quarter sales growth in Asia was 11%, compared to 16% for the first three…

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