LVMH Kicks off Luxury-Goods Earnings Season With Strong 1Q -- Earnings Review
11 Avril 2019 - 07:08PM
Dow Jones News
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 cristina.roca@dowjones.com;
@_cristinaroca
(END) Dow Jones Newswires
April 11, 2019 12:53 ET (16:53 GMT)
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