REVENUE RISE
LVMH has luxury market in the bag as shares soar
All divisions beat estimates, with the fashion and drinks units standing out
Paris — LVMH shares rose to a record in Paris after the luxury leader’s sales far exceeded estimates on rebounding demand for items from Louis Vuitton bags to Hennessy cognac. Figures released after markets closed on Monday showed first-quarter organic revenue rose 13%, compared with the 8% median forecast. All divisions beat estimates, with the fashion and drinks units standing out. The stock gained as much as 2.9% to €213.50, the steepest intraday advance in more than a month. Investment in brands such as Louis Vuitton has enabled LVMH to extend its leadership of an industry that is undergoing a turnaround after several years of ebbing demand in China and a slowdown in travel to Europe. Such levels of growth should not be expected for the full year, the company said. "As the sector bellwether, LVMH’s beat should support the luxury space," said RBC Europe analyst Rogerio Fujimori. The results "also raise the bar for other stocks reporting in coming weeks". Prada SpA is due to repor...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.