China’s Luxury Slowdown Weighs on Global Brands

Global luxury brands reported weaker third-quarter sales momentum in China as a sluggish economy weighed on demand and new offshore-trust tax rules added to financial pressures on wealthy consumers.

Results from Hermès, LVMH and Kering highlight the challenges facing the industry in a key market, where the property downturn and weak consumer confidence continue to constrain spending. LVMH said a less buoyant environment in China weighed on its third-quarter performance, even as the U.S., Europe and Japan grew.