Rejuvenated LVMH gets boost from China’s resurgent luxury goods market
Paris — LVMH continues to get a boost from a luxury rebound in China, with demand for Louis Vuitton handbags and Dior perfumes racing ahead in the holiday season. Fourth-quarter sales rose 11% on an organic basis, the Paris-based owner of luxury brands including Fendi and TAG Heuer said after markets closed on Thursday. The sales increase beat the median analyst estimate of 8.9% in a Bloomberg News survey. The stock rose as much as 3.7% on Friday. "We benefited from a highly dynamic Chinese market, which has continued to be the case in the very beginning of 2018," CEO Bernard Arnault said at a briefing. The performance of every division matched or beat estimates in the period, with the company citing rapid gains for cosmetics and makeup in Asia over the full year. Sales at French luxury conglomerates LVMH and Kering, the owner of Gucci, have been surging ahead of smaller competitors as investments in updating their products and communicating with consumers online pay off. China has ...
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