Recent commentary from retail companies and brands points to a rebound in fashion and luxury sales in China.
- Four LVMH labels — Louis Vuitton, Dior, Tiffany, and Loro Piana — are set to open multistory stores in Beijing next month, according to a report by Bloomberg.
- A Christian Dior store is also being planned in Shanghai for next year.
- Recent commentary from retail companies and brands points to a rebound in fashion and luxury sales in China.
LVMH Moet Hennessy Louis Vuitton SE is set to open major stores in China next month, according to a Bloomberg report on Tuesday, as high-end brands see early signs of a sales rebound in the world’s second-largest economy.
Four LVMH labels — Louis Vuitton, Dior, Tiffany, and Loro Piana — will open multistory stores in Beijing next month after years of development, according to the report, which cites people familiar with the matter. Christian Dior is in talks with developer Swire to open a new store in Shanghai next year, with LVMH considering further collaboration with Swire for permanent and time-limited spaces and events.
The development of some stores had been slow amid the country’s luxury sales slump, but retail companies are now signaling signs of an early rebound. Firms such as Lululemon, Tapestry, and Ralph Lauren have reported strong sales in Mainland China in their recent quarterly reports.
The opening of the new Beijing stores would be one of LVMH’s largest launches in recent years. The French luxury giant returned to growth in the third quarter, while Gucci owner Kering SA reported a smaller-than-expected drop in sales. Together, global retail leaders expressed cautious optimism about a recovery in one of their most important markets.
LVMH’s third-quarter revenue rose 1% on an organic basis, following two quarters of declines. Sales from China rose 2%, after dropping by 9% in the first half, with the company seeing encouraging demand in the country.
LVMH currently operates an exhibition space in Zhangyuan, Shanghai, while several LVMH brands, including Tiffany and Bvlgari, have also held exhibitions in the same space.
As of the last reading, the retail sentiment for LVMH’s U.S.-listed shares, LVMUY, was ‘bearish.’
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