LVMH is one of the world’s luxury goods powerhouses. It owns brands such as Louis Vuitton and more relevant perhaps to us here: Zenith, Tag Heuer and Hublot.
As we have been tracking for the past months now, unrest in Hong Kong is a major concern for the big watch groups. Hong Kong attracts buyers from across Asia and is a very important market for anything luxury.
LVMH has however come out with a surprising 17 percent sales increase, to €13.3 billion in the past quarter from July to September. That is no small change and also resulted in all the other related groups to receive a positive boost.
One caveat however seems to be that the key drivers for its growth were not necessarily the watch brands in the group (quite the contrary in fact) which is therefore not exactly a signal that Richemont and Swatch Group can stop worrying over the potential impact on their bottom line.