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Kering, LVMH and Hermès Confront Luxury’s ‘Underconsumption’ Problem

All three companies will report results amid a sharp downturn in demand in key markets. That, plus the Olympics kick off in Paris.
A man walks past an under-construction Louis Vuitton store at a shopping mall in Beijing.
Analysts expect LVMH to report 3 percent growth after market Monday, on par with the previous quarter. (Getty Images)

Luxury brands have been sounding the alarm about a global downturn in recent months. With second quarter results due out this week from three of the sector’s biggest names, we’re about to learn the extent of the damage.

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