What: LVMH's revenues fell for the second consecutive quarter, highlighting a slowdown in demand for high-end brands.

Why it is important: The decline in revenues for a sector leader like LVMH indicates broader challenges in the luxury market, particularly from key Chinese and US consumers, and sets a cautious tone for the industry's outlook.

LVMH, the owner of Louis Vuitton and Dior, reported a 1 percent decline in second-quarter revenues, with organic growth at a modest 2 percent, missing analysts' expectations. The company faced significant sales drops in Asia and sluggish growth in the US, despite a strong performance in Japan. LVMH's fashion and leather goods division saw only a 1 percent organic increase, while its watches, jewelry, wine, and spirits categories were the hardest hit. The selective retailing segment, led by Sephora, showed the most growth. CEO Jean-Jacques Guiony expressed uncertainty about the future, citing unclear impacts of China's economic policies and continued pressure on less wealthy customers in the US.

LVMH revenue slip signals continued gloom for luxury