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LVMH Unscathed by Hong Kong as Growth Sets High Bar for Luxury

Sales of fashion and leather goods rose 19 percent, with 'remarkable' performance at Louis Vuitton and Christian Dior, and total sales rose 11 percent.
Source: Louis Vuitton
By
  • Bloomberg

PARIS, France — LVMH's luxury brands bucked concerns about the impact of protests in Hong Kong, posting faster-than-expected third-quarter sales growth that set a high bar for the sector.

Sales of fashion and leather goods rose 19 percent on a comparable basis as the Paris-based company flagged “remarkable” performance at its biggest divisions, Louis Vuitton and Christian Dior. Analysts had predicted 15 percent growth.

The strong performance allays some concerns about the effects of the Hong Kong disruptions. The demonstrations against the Beijing government have curbed travel by mainland Chinese consumers and hit sales of Swiss watches.

LVMH boutiques in the territory have become a backdrop for protests that have spilled from the city’s streets to its airport and luxury shopping malls, tempering forecasts for the retailer’s growth. About 6 percent of the company’s sales were registered in Hong Kong dollars during the first half of the year, according to an interim financial report.

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Total sales at the luxury conglomerate, which also makes Dom Perignon Champagne and owns cosmetics retailer Sephora, rose 11 percent to €13.3 billion ($14.6 billion), beating the 9 percent consensus estimate.

“The United States and Europe saw good progress in the third quarter, as did Asia, despite the difficult context in Hong Kong,” the company said in a statement Wednesday after the close of trading in Paris.

The shares have risen 38 percent so far this year.

By Robert Williams, with assistance from Gregor Stuart Hunter; editor: Eric Pfanner.

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