PARIS, Oct 14 Reuters Investors in French luxury group LVMH are eager for signs that China39;s new fiscal stimulus measures can finally pull wealthy and middleclass Chinese shoppers out of their funk, inspiring them to splash out on 4,300 designer leather handbags ahead of Singles Day, China39;s largest annual shopping spree.
Global luxury bellwether LVMH, whose portfolio spans Louis Vuitton and Dior fashion and accessories, Tiffany Co jewellery and Sephora cosmetics, reports thirdquarter revenue on Tuesday.
Global sales of personal highend goods spanning clothing, accessories and beauty products this year will be between flat and 4 higher yearonyear, at constant rates, the consultancy Bain has previously said. The global slowdown is most marked in China as economic uncertainty weighs on middleclass shoppers and makes those who can still afford luxury cautious about ostentation.
LVMH shares, alongside peers Gucciowner Kering, Hermes and Richemont, owner of Cartier, have been on a roller coaster this year. The luxury consumer is all shopped out, said analysts at Bank of America, citing especially a deterioration in sales to the Chinese, who were the main growth driver in the first half of the year.
Predicting the thirdquarter will be the worst for the sector in four years, with a 1 decline in organic sales yearonyear, they also lowered estimates for earnings per share for next year by 17 on average.
Markus Hansen, a portfolio manager at Vontobel, which owns shares…