Snaggin' a new Louis clutch… on your Pinterest board. Last week, LVMH, the world's largest luxury group, dropped less-than-stellar results after years of lavish consumer spending on its iconic brands like Louis Vuitton and Dior. LVMH's fashion and leather goods, its biggest category, saw sales grow 9% — well below the 20% growth it posted in the first half of the year. Sales for its wine and spirits brands like Hennessy and Moët took a 14% tumble. 

• Old throne: Last month the luxury titan lost its status as Europe's most valuable company to Ozempic maker Novo Nordisk as the spending slowdown took a bite out of its market cap.

• New probs: LVMH is the first luxe heavyweight to report earnings this quarter, and could give more color on what to expect from rivals' results. It's not looking pretty…

Designer doldrums… High-end brands rely heavily on spending from China, where the economic rebound hasn't been rebounding. Last month, Chinese luxury spending at home and abroad was about 80% of 2019 levels, and experts think a full recovery could take a while. In the US, brands like Gucci's Kering and Cartier parent Richemont said aspirational shopping had nearly dried up as consumer savings dropped to the lowest level in nearly a year.

• Window-shop: Some high-income shoppers (think: $100K+/yr) started opting for discount retailers like Walmart and Dollar Tree. In Europe, wealthy shoppers who splurged this summer have cut back too.

Luxury's golden age is less glittery… Last year, strong demand led lots of brands to splurge on huge ad campaigns and hike prices 8% (FYI: the historical average is about 1%). But with consumption at a crossroads and inflation still high, more folks are choosing groceries and getaways over a fresh $5K bag. The slowdown is likely here to stay: while global luxury sales are expected to grow from $415B this year to half a trillion by 2027, overall luxe spending is expected to keep slowing.

Un-Ludicrous mode… Tesla's rolling up to report earnings on Wednesday, but its already public delivery and production #s disappointed: Musk's darling cranked out 430K cars last quarter, down from 480K the previous q. Deliveries also fell, to 435K. Tesla blamed the declines on scheduled downtimes for factory upgrades but stayed with its annual target of 1.8M EVs. This month Tesla had another round of price cuts for certain models in the US: the Model 3 now costs $38.9K (about $10K less than the average car or truck), which could drive demand.

You still watchin'?... Netflix reports Wednesday, and Wall Street is expecting revenue growth even amid months of Hollywood strikes. It's a big test for Netflix's password-sharing crackdown and the removal of its $10 ad-free "basic" plan, both of which have boosted subscriber growth so far. Netflix reportedly has plans to raise prices once the actors' strike ends too. Execs have said that revenue is higher on ad-supported plans than on ad-free ones. Still, building an ad business ain't easy: in June, ad-tier subscribers were just half of what Netflix had projected.

"Ethical AI" arrives… Adobe has debuted AI tools, including the newest version of its image generator, Firefly. Social-media users are comparing Firefly pics side-by-side with ones generated by Dall-E and Midjourney. But while competitors have been accused of training their AI on copyrighted images, Firefly only uses Adobe's stock pics. Getty Images recently announced an AI image generator that its CEO called "socially responsible" because it only uses Getty's licensed library. That could help avoid lawsuits: artists already sued StabilityAI and Midjourney.

In the spotlight… The Israeli gov't worked with Binance to freeze accounts it said were tied to Hamas. It's not the first time Israel's teamed up with the world's largest crypto exchange. Since 2021, authorities have seized nearly 200 Binance accounts that officials said were connected to terrorists. But experts worry the tech's use by Hamas could bolster support for a US crypto crackdown.