Business · Companies · 2 hrs ago
LVMH’s third-quarter sales growth falls short of expectations
LVMH’s currency-adjusted sales rose 1% to €18.5 billion in the third quarter, less than analysts expected.
The French luxury group owns brands including Louis Vuitton and Dior, whose fashion and leather goods were less in demand.
That business, which brings in nearly half of LVMH’s revenue, fell 5%, a sharper drop than analysts had forecast.
China’s business was less dynamic, while the company described growth in the US, Europe and Japan as good.
The results add to concern that the luxury sector may struggle to regain momentum after three years of decline.
European luxury groups have lost about €330 billion in market value since the start of the year, while LVMH’s market value has fallen about 40%.
The figures point to a difficult recovery, but no specific next steps were given.
LVMH’s currency-adjusted revenue rose 1% year on year to 18.5 billion euros in the third quarter, below analysts’ expectations of 1.3% growth.
Its fashion and leather goods division, which generates nearly half of group revenue, recorded a 5% organic sales decline.
Demand for brands including Louis Vuitton and Dior was weaker, and business in China was less dynamic.
The United States, Europe and Japan continued to record what the company described as good growth.
- Who
- French luxury goods group LVMH.
- What
- Third-quarter currency-adjusted revenue rose 1% to 18.5 billion euros, below analysts’ expectations.
- When
- The third quarter; LVMH reported the figures on Monday.
- Where
- LVMH’s markets, including China, the United States, Europe and Japan.
- Why
- The sources cite weaker demand for fashion and leather goods and less dynamic business in China; they do not state a specific reason for the shortfall against expectations.
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- Third-quarter revenue
- 18.5 billion euros
- Currency-adjusted revenue growth
- 1% year on year
- Analysts’ expected revenue growth
- 1.3%
- Fashion and leather goods
- 5% organic sales decline
- Markets with reported good growth
- United States, Europe and Japan
Sources
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