The company reported solid financial improvement, which drove up its share price.
The LVMH Moët Hennessy Louis Vuitton sharesthe luxury group of tycoon Bernard Arnault, they soared up to 14% on the Paris stock marketmarking its biggest intraday advance since 2001, after the giant surprised the market with a return to sales growth in the third quarter.
The result fueled optimism that the global slowdown in luxury goods consumption is beginning to reverse.
The French group, owner of emblematic brands such as Louis Vuitton, Christian Dior and Moët & Chandon, registered a 1% organic increase in revenuebreaking two consecutive quarters of declines. All of its divisions beat analyst forecasts, with especially strong performance in the region that includes China, where sales rose 2%, after falling 9% in the first half of the year.
“The recovery in all regions is encouraging and predicts a sustained return to growth,” said the analyst. Chiara Battistiniby JP Morgan. Optimism was reflected in the rest of the sector: Kering, Gucci’s parent company, advanced 8.8%, while Hermès International and Prada also registered strong increases.
louis vuitton
Reuters
LVMH CFO Cecile Cabanishighlighted that the Chinese rebound is supported by more stable demand and the fact that many consumers still have savings accumulated after the pandemic. In the US, sales grew 3%, although in Europe they fell 2% due to the lower influx of American tourists and the weakness of the dollar.
Solid fundamentals
The group also reported a recovery in its wine and spirits division, driven by the replenishment of champagne inventories in the US and the increase in sales of rosé wine.
Despite the recent slowdown in luxury, the company led by Arnault maintains its investment strategy. Louis Vuitton launched its first makeup line this year, while its new flagship store in Shanghai, the ship-shaped “The Louis,” became a visitor magnet.
In addition, LVMH renewed its creative teams: it appointed Jonathan Anderson as head of Christian Dior Couture and Maria Grazia Chiuri as the new creative director of Fendi. These bets reinforce the group’s strategy to maintain its leadership in a luxury market that seems to be returning to the path of growth.
Source: Ambito
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