Market Overview

LVMH's Earnings Show High-End Luxury Market Remains Strong

Share:
LVMH's Earnings Show High-End Luxury Market Remains Strong

LVMH, the parent company of ultra-high end brands including Louis Vuitton, Moet Hennessy, Givenchy, De Beers Diamond Jewelers and many others, reported strong third-quarter results, which show demand for high-end luxury goods remains strong.

Figures For LVMH

The France-based company reported that total organic sales rose 6 percent in the third quarter. Asia (excluding Japan) was highlighted as showing a "significant improvement" in the quarter, while the United States and Europe (except France) remain "well positioned."

Revenue rose 4 percent to 26.3 billion euros for the first nine months of 2016, while organic revenue rose 5 percent during the same period. Perfume and cosmetics sales were the strongest and grew 6 percent on a reported basis, and organic sales grew 8 percent.

Related Link: 7 Retail Stocks In Focus After September Sales Data Released

The fashion and leather goods segment also saw an acceleration in the third quarter.

"The strong performance of the fashion and leather goods division and commentary about improvement in Asia should be taken positively for the soft luxury industry as a whole," Bloomberg quoted Zuzanna Pusz, an analyst at Berenberg, as saying in a research note.

Performance And Peers

Shares of LVMH's European-listed stock (EPA: MC) gained more than 5 percent and traded as high as 166 euros, its highest level since the November 13 terrorist attack in Paris. ADRs (trading (OTC: LVMUY)) closed Monday's session at $36.05.

American luxury good names also saw a slight boost to their stock early Tuesday morning. Shares of Kate Spade & Co (NYSE: KATE) gained 1.26 percent and Coach Inc (NYSE: COH) gained 0.42 percent.

Full ratings data available on Benzinga Pro.

Do you have ideas for articles/interviews you'd like to see more of on Benzinga? Please email feedback@benzinga.com with your best article ideas. One person will be randomly selected to win a $20 Amazon gift card!

Posted-In: High End Luxury Goods Louis Vuitton Luxury goodsEarnings News Markets Movers Media Best of Benzinga

 

Related Articles (COH + KATE)

View Comments and Join the Discussion!

With Slim Chances Of A Buyout, Twitter Needs A Plan C

Seagate Shares Higher As Q1 Sales Outlook Boosted