LVMH Shares Buoyed by Reassuring Set of 2018 Results
30 Janvier 2019 - 12:01PM
Dow Jones News
By Olivia Bugault
LVMH Moet Hennessy Louis Vuitton (MC.FR) shares rose on
Wednesday, a day after the world's biggest luxury company posted
soaring results for 2018, outshining expectations in the closely
watched fashion & leather division that houses its namesake
Louis Vuitton brand.
The French company's revenue hit a record 46.8 billion euros
($53.50 billion) for the year, with fourth-quarter sales jumping 9%
to EUR13.7 billion compared with the same quarter in 2017, LVMH
said late Tuesday. Net profit for the full year rose 18% to EUR6.35
billion.
"We believe that this healthy set of numbers, combined with a
positive tone from management, should provide investors with
much-needed comfort about the current trends in the luxury market,"
analysts at Berenberg said. The brokerage said LVMH offers "one of
the best growth profiles in the luxury sector."
At 1020 GMT shares in LVMH traded up 6.3% at EUR276.05, on track
to record their steepest rise since July 2016.
LVMH's results came as positive surprise to the many investors
who have been worried that luxury companies could be affected by
slowing demand in China, whose shoppers account for almost a third
of global luxury purchases. LVMH's strong 4Q sales, in particular,
suggest that Chinese shoppers continue to spend on high-end goods
despite trade and economic concerns.
Goldman Sachs highlighted the strong increase in fashion &
leather sales, which it attributed to "the success of the group's
largest brand, Louis Vuitton, as well as Dior with a very buoyant
Chinese consumer."
Goldman said it expects a strong read-across for Kering
(KER.FR), specifically its Gucci brand.
Kering is due to report full-year results on Feb. 12. Its shares
were last up 3.7% at EUR434.
Write to Olivia Bugault at olivia.bugault@dowjones.com
(END) Dow Jones Newswires
January 30, 2019 05:46 ET (10:46 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
Lvmh Moet Hennessy Louis... (EU:MC)
Graphique Historique de l'Action
De Mar 2024 à Avr 2024
Lvmh Moet Hennessy Louis... (EU:MC)
Graphique Historique de l'Action
De Avr 2023 à Avr 2024
