Louis Vuitton Parent Says China’s Lockdowns Are Hurting Demand

(Bloomberg) — LVMH warned it’s currently seeing a negative impact on demand for luxury products due to lockdowns in China — a potential early warning for the rest of the industry.

In a call Tuesday, Chief Financial Officer Jean-Jacques Guiony told analysts he is confident about medium to long-term demand in China once the situation gets back to normal. He added that Chinese authorities have shown their ability to quickly contain the pandemic before — especially in 2020 — and he doesn’t believe the current situation is worse than it was then. He predicted Shanghai’s lockdowns will ease “relatively soon.”