LVMH Third-Quarter Sales Below Expectations as Fashion and Leather Division Shrinks
Organic sales rose 1% to €18.28 billion, but LVMH’s fashion and leather goods unit fell 5% as China demand softened.
- On Monday, LVMH reported third-quarter group revenues rose 1 percent to €18.5 billion, though its flagship fashion and leather goods division posted a 5 percent organic sales decline.
- Chief Financial Officer Cecile Cabanis cited a 'macro-led deterioration' in Chinese consumer sentiment as the $350 billion luxury sector remains mired in a three-year slowdown.
- While business activity in China appeared less 'buoyant,' the United States, Europe, and Japan saw 'good growth,' with wines and spirits posting a 6 percent organic sales increase.
- Investors reacted by sending US-listed shares down nearly 3 percent, extending a decline of more than 41 percent this year that pushed LVMH behind L'Oreal as France's most valuable company.
- HSBC downgraded the stock to Hold from Buy last month, lowering its price target to 490 euros as analysts monitor whether Dior and Louis Vuitton collections can stabilize demand.
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The group, which brands include Louis Vuitton, Dior, Celine and drinks maker Hennessy, took in €18.5 trillion in the three months to the end of September, being the consensus of analytics polled by Factset financial data firm.
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Sales in the fashion business and leather goods of LVMH fell 5% in the third quarter of the year, with the luxury group hit by a slowdown in demand in China, where the first hopes of a turnaround disappointed. Exclusive material for subscribers. To have full access, access the link of the subject and make your registration.
LVMH third-quarter sales dragged down by weak Chinese demand for ...
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PressNewsAgencyLVMH third-quarter sales below expectations as fashion and leather division shrinks
PARIS, Oct 12 : France's LVMH on Monday reported worse-than-expected third-quarter organic sales growth as weak demand for its fashion and leather goods weighed. Organic sales, which strip out currency swings, rose 1 per cent year-on-year to €18.28 billion ($20.40 billion), compared with the 1.3 per cent
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