China luxury sales slump

In July, sales at the 25 largest luxury brands in China dropped over 10%, a sharper decline than in June and a reversal from earlier growth. Major houses including LVMH's LVMH — Louis Vuitton and LVMH — Dior, Kering's Kering — Gucci, Kering — Bottega Veneta, and Balenciaga saw double-digit drops, while Hermès swung to declines and Chanel and Prada decelerated. The slump is attributed to China's campaign to tax offshore wealth and tighten capital controls, which dampened spending by wealthy consumers and eroded confidence amid falling stock markets. The MSCI China Index is down 8.9% this year, and the Hang Seng Index has lost momentum. China — Macau casinos also reported revenue declines. Luxury stocks fell on Euronext. LVMH also faced a trademark dispute with Molly Tea, which sparked a social media backlash. Retail sales growth slowed to 0.6%, with jewelry and cars plunging over 10%. August's Chinese Valentine's Day is seen as a key test of consumer confidence.