If you’re still under the impression that the luxury retail landscape in America is all rainbows, butterflies and puppy dogs—think again.
In this clip from The Call @ Hedgeye this morning, Retail analyst Jeremy McLean highlights why the latest (less-than-lackluster) earnings report from LVMH suggests additional retail weakness lies ahead. Shares in bellwether LVMH are down today as investors digest developments that one of the world's top luxury brands is moving towards a less impressive path of growth.
“The U.S. was the weakest performer,” McLean explained. “It slowed to negative 1%, from 8% in Q1. Management specifically said they’re seeing weakness in the U.S. market related to what they call ‘aspirational customers.’”
“This is a major issue,” replied Hedgeye CEO Keith McCullough.
Watch the full clip above, and click here to subscribe to The Call for actionable updates/research from Hedgeye’s team of over 40 analysts.
