Yuan Shift Points to Growing China Risk for LVMH, Automakers - Bloomberg
For companies from LVMH Moet Hennessy Louis Vuitton SE to BMW AG to Yum. Years of surging economic growth that spurred sales of luxury goods -- Louis Vuitton handbags, Tiffany rings, BMW 5-Series cars -- as well as mundane items like KFC chicken and Kone elevators already had given way to the deepest slowdown since... Among luxury-goods makers, LVMH sank 5. 4 percent in Paris, New York-based Tiffany & Co. declined 2. 1 percent, and Swatch Group AG, owner of the Omega watch brand, dropped 5. 1 percent. Auto-parts makers including Delphi Automotive Plc fell the most since mid-July, while BMW lost 4. 3 percent. Yum, which owns the KFC and Pizza Hut fast-food chains and gets more than half of its revenue from China, fell 4. 8 percent in New York. Luxury Slump At both LMVH and Tiffany, sales in Asia excluding Japan accounted for more than a quarter of sales in their latest quarters and were trending lower. Louis Vuitton sales in China, Macau and Hong Kong fell about 10 percent in the second quarter, Paris-based LVMH, which also owns Moet. Source: www.bloomberg.com
