…and you didn’t buy any to replace it. (Destocking!) LoLo, Esq., and I are hitting the retail beat again to let you know that – QUEL HORREURS! – European luxury flagship Louis Vuitton Moet Hennessy (LVMH)’s earnings got leaked, and they don’t look so hot:

LVMH Moet Hennessy Louis Vuitton SA, the world’s largest luxury company, posted first-half profit below analysts’ estimates after retailers cut their inventories, hurting demand for Moet champagne and Tag Heuer watches.

Net income in the six months to June 30 fell 23 percent to 687 million euros ($977 million), Paris-based LVMH said late yesterday, releasing results two days earlier than scheduled after they were leaked. That missed the average 734.6 million- euro estimate in a Bloomberg survey of 12 analysts. Second- quarter sales were little changed at 3.8 billion euros.

LVMH said it will step up cost cuts as the recession persists, focusing them outside its best brands. Wines, jewelry and watches sold through third parties suffered “massive destocking,” LVMH said, offsetting gains by Louis Vuitton fashions, where the company controls more of its own retailing.

It’s a far cry from the earnings we got out of Hermes, where they’ve got their defense to the “destocking” problem down to an art, in that they manufacture about five handbags a year made out of alligators they raise themselves, so that there’s not nearly enough supply as to make it even feasible to offer product through those fickle third-party retailers who might not be willing or able to restock their shelves with your products.  LVMH’s leather goods did okay, but they suffered mightily from the newfound popularity of cheap Scotch, box wine (Franzia is the new PBR, pass it on) and, presumably, fake Tags, since their jewelry business suffered as well.

This also brings me around to a favorite image from the archives, by Jason:

Yep, we’ve got your “destocking” – right here.