A powerful wave of post-pandemic spending has slowed down due to rising prices and economic uncertainty, according to luxury goods industry leader LVMH, which announced a 9% increase in third-quarter revenue on Tuesday. This represents slower growth.

“After three roaring years, and outstanding years, growth is converging toward numbers that are more in line with historical average”, LVMH chief financial officer Jean-Jacques Guiony told analysts.

After adjusting for currency fluctuations and acquisitions, LVMH, which owns brands like Louis Vuitton, Dior, Tiffany, and Bulgari, reported revenue of 19.96 billion euros ($21.16 billion), up 9% over the previous year. Annualised total revenue increased by 1%.

In contrast to analysts’ estimates of 10% increase, the fashion and leather goods segment, which includes Louis Vuitton and Dior, reported sales growth of 9%.

While the recovery in China has been patchy, LVMH is dealing with a decreasing demand for high-end items in the United States and Europe. Rising costs have caused consumers, particularly younger generations, to pull back from a post-pandemic spending spree.

Although business in Europe slowed over the quarter, Guiony stated that there was little difference in demand for Chinese fashion and leather items compared to two years earlier, other than the fact that more purchases are being made outside of the mainland as travel has resumed.

(Adapted from Investing.com)