Bernard Arnault Gets a Little Reality Check

Even the well-off decide to stick with their older Louis Vuitton and Dior handbags sometimes, rather than splashing out on new ones.

French luxury giant LVMH Moet Hennessy Louis Vuitton SE on Tuesday reported a 1% revenue increase in the three months to Dec. 31, excluding currency movements. That was slightly better than expected, but the standout was sparkling jewelry. Sales at the crucial fashion and leather-goods division fell 3%, much as feared, while the wines and spirits business delivered a 9% decline in organic sales, far worse than the roughly 1% slide anticipated.