LVMH’s wine and spirits division has reported a decline in its first-quarter sales, largely attributed to weak demand for Cognac in both the United States and China.
The luxury goods conglomerate, known for its extensive portfolio across various sectors, revealed the downturn in its latest financial update. The drop in sales marks a setback for LVMH’s renowned wine and spirits segment, which has previously seen strong growth, particularly from the global appetite for high-end beverages.
This decline is believed to stem from reduced consumption and cautious spending in key markets, specifically in the U.S. and China, where Cognac – a staple of the division’s portfolio – has struggled to maintain momentum.
Despite the challenges in the first quarter, LVMH remains optimistic about the recovery in subsequent months, with expectations for a rebound as market conditions improve.
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