PARIS, France – LVMH Moet Hennessy Louis Vuitton SA, the world’s largest luxury-goods maker, reported full-year earnings that missed analysts’ estimates as Chinese shoppers curbed spending on Vuitton handbags and Hennessy cognac.
Profit from recurring operations fell to 5.72 billion euros ($6.6 billion) from 6.02 billion euros in 2013, Paris-based LVMH said today in a statement after markets closed, the first annual decline since 2009. Analysts predicted 5.83 billion euros, according to the average of 25 estimates.
Chinese tourists are spending less in Hong Kong because of pro-democracy protests that ran for 79 days last year and restarted this month, while anti-graft measures are weighing on sales in China. Strengthening demand in the Americas and the euro’s slide against most major currencies has helped cushion the effect of the slowdown in Asia for LVMH.
“Despite a climate of economic, currency and geopolitical uncertainties, LVMH is well-equipped to continue its growth momentum across all business groups in 2015,” the company said in the statement.
LVMH booked a 2.81 billion-euro capital gain after distributing its 23 percent stake in Hermes International SCA to investors. The company began unwinding its position in December to settle a four-year dispute with Hermes’s family owners for accumulating the stock without their knowledge.
By Andrew Roberts. Editors: Celeste Perri, Paul Jarvis, Thomas Mulier.