LVMH has suggested luxury spending is suddenly slowing in the US

LVMH has suggested luxury spending is suddenly slowing in the U.S, per CNBC.

In the second quarter, LVMH observed a 1% decline in its U.S. sales compared to the same period the previous year. This underwhelming performance in the U.S. market followed a recent announcement from Richemont, the owner of Cartier, which reported a 4% decrease in sales in the United States. The news led to a 10% drop in Richemont's shares and put pressure on other luxury stocks throughout the week as analysts prepared for a potential slowdown in the U.S. luxury market.

Conversely, LVMH experienced an 18% increase in sales in Europe during the second quarter. According to Guiony, nearly half of this growth was attributed to tourists.

China presented a stark contrast to the U.S. market. In total, LVMH reported a 17% increase in sales for the quarter, driven by a remarkable 34% surge in Asia, excluding Japan.