The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
PARIS, France — Shares in luxury goods group LVMH briefly fell almost 9 percent at the open on Monday before recovering in what traders said was likely a "fat finger" erroneous trade.
The shares on Paris' CAC 40 opened at €310.45 ($351.34) and fell to €285.7, their lowest since February 12 in the opening minutes.
The stock then recovered most of the lost ground and were at €312.75, down 0.2 percent, at 0905 GMT.
Turnover in the stock was unusually high, with almost 200,000 shares traded in the first 75 minutes after the opening bell, 28 percent of its 100-day average daily total.
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LVMH and Euronext, which operates the CAC 40 stock exchange, were not immediately available for comment.
"It was probably a fat finger right at the start of trading," said a Paris-based trader.
"No one understood what happened. It was likely a mistake," said another trader.
By Sudip Kar-Gupta, Blandine Henault, Danilo Masoni and Josephine Mason; editor: Louise Heavens.
Hermes saw Chinese buyers snap up its luxury products as the Kelly bag maker showed its resilience amid a broader slowdown in demand for the sector.
The group’s flagship Prada brand grew more slowly but remained resilient in the face of a sector-wide slowdown, with retail sales up 7 percent.
The guidance was issued as the French group released first-quarter sales that confirmed forecasts for a slowdown. Weak demand in China and poor performance at flagship Gucci are weighing on the group.
Consumers face less, not more, choice if handbag brands can't scale up to compete with LVMH, argues Andrea Felsted.