The insight: LVMH’s disappointing Q1 results are a warning sign for the luxury industry, as companies struggle to navigate a highly uncertain and volatile environment.

By the numbers: Sluggish demand in the US and among Chinese consumers weighed on LVMH’s performance in the first quarter: Sales fell 3% YoY, much to the surprise of analysts who expected a 2% increase.

• Sales declined in 4 of 5 LVMH business segments—the lone exception being the watches and jewelry division, which was flat on an organic basis.
• The company’s fashion and leather goods division, which accounts for roughly half of its revenues, reported a 5% YoY decrease. That was considerably more than the 0.55% decline analysts expected, as strength at Louis Vuitton and Loro Piana failed to offset weaknesses at its other brands.