LVMH saw its share price decline by almost 8.5 per on Wednesday. This is the largest intraday decrease in share value in about two years. The luxury good maker with multiple well recognized brands once was the most valuable company in Europe but has conceded its top position to Danish drugmaker Novo Nordisk A/S in September. Seven large luxury companies in Europe have lost about $245 billion in market value.

The luxury goods market peaked during the pandemic with huge demand from China and the U.S. Luxury goods sales have cooled in the following years and sales of high-end merchandise have been declining in the past few quarters and continues to do so. Bernard Arnault, who was the once richest man in the world for months, has also conceded the top position back to Elon Musk.

Some of the quarter results reported by the LVMH group are as follows:

LVMH’s biggest unit is fashion and leather. Although it increased by 9 percent in the third quarter, it was much below analysts’ estimates and about 50 percent less when compared with the first six months.

LVMH’s wine and spirits unit fell by 14 percent. This unit also performed well below the Street’s estimates. Remy Cointreau shares spiraled due to falling demand for cognac. Champagne labels such as Dom Perignon and Hennessy Cognac saw a decline in U.S. sales, after prices were increased.

During its quarterly presentation, LVMH’s Chief Financial Officer Jean-Jacques Guiony told investors that its second biggest brand, Christian Dior is not expected to maintain its earlier 30 percent growth seen in the past few years.

LVMH is not the only luxury goods brand to see a sharp fall in sales. Hermes is expected to release its sales figures in late October. The outstanding demand for its Birkin and Kelly bags, which is much more than its production, is expected to keep the company afloat and it could continue with its 20 percent increase in share price this year.

Another LVMH competitor, Kerig which owns the popular Gucci brand, is also expected to release its sales figures later this month. The company has seen turmoil this year due to many changes and its stock has seen a 10 percent decline this year.

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