The photo taken on April 23, 2024 shows the view of a new Louis Vuitton raggener shop belonging to the Lvmh Moet Hennessy Louis Vuitton SA in the Champion Eri See Avenue in Paris.
Julien de Rosa | AFP | Getty Image
Stock LVMH Investors retreated because the world’s largest luxury companies exceeded their expectations, exceeding their expected annual results, and continued to remain carefully overtaken by the investor’s radical luxury sector.
The owners of brands such as Louis Vuitton, Moet & Chandon, and Hennessy have earned a profit of 846.8 billion euros ($ 88.27 billion) in 2024, exceeding the forecast of LSEG analysts by 843.8 billion, and 1 % year -on -year. It was equivalent to organic growth.
LVMH is slightly reduced by 5.42 % by 11:00 am in London time. Fellow luxury stock King and Christian Dior Each dropped 5.82 % and 5.06 %.
Investors were searching for further confirmation of the recovery of the luxury sector after Cartier owner Richmont reported “the best in history” during the celebration shopping period. However, the decrease in sales in important fashion and leather products, wine, and spirits in LVMH pointed to continuous pressure within the group.
LVMH
“After the wonderful start of the luxury sector reporting season, expectations were growing prior to the fourth quarter of LVMH. This is considered to be a proxy for sector, but the company is relatively in the evening of yesterday. I reported an overwhelming result set. ” Mamta Valchha, QUILTER CHEVIOT consumer discretional analyst.
LVMH believed that on Tuesday, it was due to the growth of profits in the selective retail departments, including retailers, Sephora, and the selective demand in the selective retail department of perfume and cosmetics. Growth was widely promoted by the United States, Europe, and Japanese consumers, but the larger Asia -Pacific region, especially China, is delayed.
“The emotions among wealthy shoppers have recovered in the United States and Japan in Europe, but in China, it is a luxurious sector, and it is still weak, but this is a sign of stable progress and luxury. It is a sign that the ship will move forward, “said Hargreaves Lansdown’s money and market manager.
French luxury giants are considered to be a larger luxury industries, which have been facing major pressure in recent years in a wider headwind of China’s sales and headwinds of a wider macro economy.
“LVMH saw continuous improvement, but it was not more noticeable than Rich Mont and Burberry,” said Kilter Cheviott Valecha. “If LVMH first reported this revenue season, this series of results would have been well digested, but it was surprising to see the stock this morning because the bar was already set high. there is no.”
Luka Solka, a senior analyst of Bernstein’s global luxury product, pointed out the continuous difference between the high -end sector and the remaining profits on Tuesday, and LVMH “I did a job” to regain the market share. I added that I could do “. segment.
“If you look at the organic growth gap between Richmont’s jewelry Mason and LVMH’s fashion and leather segments, you can see that this is continuing,” Solka told “Squawk Box Europe” on Wednesday. 。
“It’s an obvious message, and the most important job to do is Dior, the price is significantly raised, and it’s no longer a story of the day.”
LVMH shares are now increasing by about 14 % from the beginning of the year. Earlier this month, the group has surpassed the huge Denmark pharmaceutical Novo Nordisk and regained the title of the most valuable company in Europe.
