Lvmh Moet Hennessy Vuitton (EU:MC)
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By Cristina Roca
French luxury-goods group LVMH Moet Hennessy Louis Vuitton SE (MC.FR) reported first-quarter revenue after market-close on Wednesday. Here's what we watched:
SALES BEAT EXPECTATIONS: LVMH posted first-quarter revenue of 12.54 billion euros ($14.13 billion), ahead of analysts' expectations of EUR12.23 billion, according to a consensus estimate provided by FactSet.
WHAT WE WATCHED:
-STRONG SEASON OPENER: LVMH's update got the results season for the luxury-goods sector started on a strong note. The French group's results were welcomed by investors, helping its own shares as well as other luxury-goods stocks climb higher. The group, often regarded a bellwether for the sector, should have "strong readacross for the rest of the sector," Deutsche Bank analyst Francesca DiPasquantonio flagged ahead of the release.
-FASHION & LEATHER GOODS BAG STRONG QUARTER: Revenue from LVMH's fashion and leather-goods division posted 15% organic growth, making it the group's main growth driver. Its Louis Vuitton, Christian Dior, Fendi and Loewe brands all outperformed, Jefferies analyst Flavio Cereda says. The watches and jewelry category, meanwhile, did a little worse than expected, RBC analyst Rogerio Fujimori says.
-ALL IS GOOD IN CHINA FOR NOW: As Deutsche Bank predicted, China was less of a concern this time around with investors' concerns about demand in the region having been somewhat reassured by earlier commentary. LVMH management said in a call that revenue in Asia excluding Japan posted 17% organic growth, making it its fastest-growing region.
Write to Cristina Roca at email@example.com; @_cristinaroca
(END) Dow Jones Newswires
April 11, 2019 12:53 ET (16:53 GMT)
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