LVMH shares fall 5% because the results of the whole year throw suspicion of a wide luxury recovery
The photo taken on April 2, 2024 shows a view of the new luxury Louis Vuitton store, which belongs to the French luxury group of LVMH Moet Hennessy Louis Vuitton S, on the Champs Elysee Avenue in Paris.
Julien de Rosa | AFP | Getty Images
LVMH shares on Wednesday fell to 5% after slightly better than the expected annual results of the world’s largest luxury companies brought suspicion of a wider recovery in the luxury sector.
Brand owner including Louis Vuitton, Moët & Chandon and Hennessy Published revenues Of 84.68 billion euros (88.27 billion USD) for 2024, more than 84.38 billion euros in the forecast of LSEG analysts and equalizing with organic growth of 1% compared to the previous year.
The shares dropped by 5.26% to 8:24 in London.
Investors sought further confirmation of recovery in the luxury sector after Cartier owner Richlanica He reported on his “highest” three -month sales character during the purchase period. However, sales decline in the LVMH segments of critical fashion and leather goods and wine and alcoholic beverages indicated continuous pressure within the group.
On Tuesday, LVMH attributed its revenue growth to solid demand within its selective retail department – which includes Sephora seller – and perfumes and cosmetics. Growth also managed consumers in the United States, Europe and Japan, while the wider Asian -Pacific region – and especially cinemas – lagged behind.
The French giant of luxury goods is considered to be a bell for the wider luxury industry, which in recent years has faced significant pressure due to the fall of China’s sales and wider macroeconomic winds.
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