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LVMH Revenue Growth Matches Estimates as Europe Offsets Asia

By
  • Bloomberg

PARIS, France — LVMH Moet Hennessy Louis Vuitton SA, the world's largest luxury-goods maker, reported third-quarter revenue that met analysts' estimates as improved growth in Europe and the U.S. compensated for slowdown in Asia.

Revenue advanced 5.7 percent to 7.4 billion euros ($9.4 billion), Paris-based LVMH said today in a statement. Analysts predicted 7.4 billion euros, according to the median of 19 estimates compiled by Bloomberg. Sales climbed 4 percent, excluding acquisitions, disposals and currency moves, beating the 3.4 percent gain predicted by analysts.

“In an uncertain economic and financial environment, LVMH will continue its strategy focused on innovation and targeted geographic expansion in the most promising markets,” the company said in the statement.

LVMH's report follows Burberry Group Plc, which said earlier today that market conditions are deteriorating. Burberry, the U.K. maker of $1,600 trenchcoats, said wholesale revenue will fall in the second half, while handbag maker Mulberry Group Plc forecast that full-year earnings will be significantly below estimates.

Fewer Chinese tourists are shopping in Hong Kong because of pro-democracy protests, while a government crackdown on lavish spending has weakened consumption in China. Worldwide sales of personal luxury products will rise 2 percent this year, the slowest pace since 2009, Bain & Co. estimated today.

LVMH shares fell 0.4 percent to 125.1 euros in Paris today, taking the decline to 5.7 percent this year and giving the company a market value of 63.5 billion euros.

By Andrew Roberts; editors: Celeste Perri, Paul Jarvis.

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